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A leading innovation and marketing blog from Braden Kelley of Business Strategy Innovation

Friday, July 31, 2009

Congratulations to the BIF-5 Contest Winner


Voting is now closed, and we have a winner for my ticket to the Business Innovation Factory (BIF-5) conference October 7-8, 2009 in Providence, RI. Here again were the Three Finalists:

  1. Creating a Bachelor of Innovation by Dr. Terrance E. Boult, University of Colorado at Colorado Springs

  2. Breaking Innovation Barriers by Looking Beyond by Vyoma Kapur, Colspark LLC

  3. A Nightmare on Innovation Street by Brad Barbera, KAB Business Research

And the winner is...


Vyoma Kapur of Colspark LLC!
  • Colspark seeks to foster greater collaboration between academia and businesses. They believe in creating a dynamic knowledge and information flow between colleges and companies. They do this by giving college students a platform to solve companies' sales, marketing and business problems. By bringing students and companies closer together, they create an environment where the best and the brightest are rewarded. Using the principles of open innovation, effective ideas and solutions are generated for companies. Colspark endorses open communication and open innovation while operating in a secure environment. Companies have rights to confidentiality, while participating students can be rest assured that their intellectual property is protected.

Vyoma wins my ticket to the Business Innovation Factory conference after her article "Break Innovation Barriers by Looking Beyond" received the most comment votes and @reply votes on Twitter.

(NOTE: Travel expenses are NOT included and are the responsibility of the winner)

For those who would still like to go to the conference before it sells out, as a special bonus for my loyal readers I've negotiated a special $50 discount when you enter "BK110" in the payment code field on the payment options page during registration - this will get you in for $1,150. Groups of five or more can get extra discounts.

New storytellers are added each week, but so far they include:
  • Don Tapscott, "Wikinomics"

  • Jeff Jarvis, "What Would Google Do?", buzzmachine.com

  • John Maeda, President, Rhode Island School of Design

  • Jonah Lehrer, "How We Decide"

  • Keith Wilmot, Global Director Insights, Ideas & Creativity, Coca Cola

If you'd like to explore and discuss innovation issues further, please join our Continuous Innovation group on LinkedIn.



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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What are you doing to innovate for an obese America?

The Wall Street Journal reported this week on the huge price being paid in health-care spending due to America's rapidly expanding waistlines: $147B.

How are we as innovators leading companies to address this head on?

Lecturing, hectoring and "education" aren't changing what's on America's plate, or at least not quickly enough.

I recommend reading Hank Cardello's book "Stuffed: An Insider's Look at Who's Really Making America Fat." As a former exec at Coca-Cola and General Mills, he knows the institutional challenges of bringing Health & Wellness (H&W) innovation to market. He also has smart strategies for overcoming them.

Similarly at our firm, we refuse to give up on major Food & Beverage (F&B) category innovation that improves health.

We're especially excited by five H&W vectors we believe are poised to explode in F&B innovation. We advocate innovating with...

  1. The Pleasure Principle - Healthier food that tastes better than not-so-healthy choices

  2. Next-Wave Hybrids - Transferring ingredients from one F&B use to another to improve H&W outcomes

  3. Ancient Natural Miracles - Going beyond green tea into previously obscure Asian fruits, cocoa and more

  4. Process Leaps - Skipping incremental change to create a whole new thing, made a whole new way

  5. Right For You = RFY - Appealing to needs for individuality, authenticity and community around food choices

Our 4-minute video "Beyond BFY: The New Spectrum in Heath & Wellness Innovation" outlines these vectors along with current and upcoming examples:





Eager to learn what you're exploring to grow your bottom line whilst shrinking America's bottoms!



Joy Bergmann is Communications Director at innovation consultancy Fahrenheit 212 in New York.

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When Innovation Fails

"Innovation can never be risk-free, but you can certainly make sure you look before you leap."

Ever since innovation became the buzzword du Jour, a lot of people seem to have lost their ability to tell smart ideas from stupid ones. Case in point: the financial "innovations" (read: stunningly stupid loan products) that kicked off the trillion-dollar economic meltdown mess we're currently in. The simplistic notion that "new equals good" has often been a recipe for grand-scale disaster, just as it was in the dotcom debacle at the turn of the millennium. And when the doo-doo inevitably hits the fan, it's all too easy to level the blame at innovation per se rather than admit to being a bonehead. Here's why many ideas that are labeled "innovations" are just plain stupidity.

Simply put, innovation goes wrong (sometimes big time) when an organization over-commits to an idea before validating the key assumptions on which it is based. Let's take the infamous sub-prime mortgage. The assumption here was that a jobless, homeless person who is just out of jail and doesn't even have a bank account can afford to make mortgage repayments of any description, let alone horrendously overpriced ones.

The idea of selling mortgages to poor people with bad credit was clearly "new" given that banks have traditionally offered 30-year, fixed-rate amortizing home loans to people who looked like they could actually pay the money back. But going after this risky, low-end market segment with a ripoff financial product wasn't exactly what C.K. Prahalad had in mind when he talked about "the fortune at the bottom of the pyramid." And it turns out - duh! - that this particular "financial innovation" wasn't a very smart one (to put it mildly), and even less smart when used as the cornerstone for a multitrillion dollar house-of-cards based on endless derivatives of derivatives.

It's precisely big boondoggles like this one that give innovation a bad name. In fact, columnist Paul Krugman wrote in the New York Times that "financial innovation" is a phase that "should, from now on, strike fear into investors' hearts." Yet should the financial services industry - or any industry for that matter - now decide to "throw the baby out with the bathwater" when it comes to innovation?

Absolutely not. It's worth remembering that over the last couple of decades, innovation has given us a string of success stories in financial services:
  • Charles Schwab's online equity trading

  • Commerce Bank's open-all-day, seven-days-a-week business model

  • First Direct's branchless banking

  • Grameen Bank's micro-credit lending concept

  • PayPal's user-friendly, online-payment service

  • Umpqua Bank's people-centered retail environments

The difference with these opportunities is that they were all based on very solid assumptions about the viability and sustainability of the business model; they were not built on proverbial sand. That's why these innovations have created significant new value and wealth, instead of destroying it.

Unfortunately, there are all too many cases where companies have overcommitted to an idea that wouldn't even pass the sanity test. These tend to be ideas where the customer benefit is unclear or unimportant to people, or where the technology is not yet up to the task, or where the market is just not there, or where the business model is so stupid that it's dead on arrival. Instead of first checking the validity of critical assumptions on which the idea is based, sometimes a company (or even a whole industry) decides to jump from 10,000 feet without a spare parachute, hoping against hope that the thing will somehow work.

Take Iridium, Motorola's failed satellite telephone venture, which was built on a fundamentally flawed assumption about the size of the target market. Basically, Motorola totally underestimated the speed at which cellular coverage would spread. Their premise was that there would be huge regional gaps in the global network - parts of the world that would have no mobile phone coverage for a long time to come. That would have made Iridium the perfect answer. It turned out quite quickly that those regions would be very few and far between (you would practically have to be an Arctic explorer to need an Iridium phone!), so the target market soon shrank to insignificance. This is something Motorola should have known better.

Or take Webvan, the "oh-so-dotcom" online grocery business that burned through a billion dollars and went belly-up. There was nothing fundamentally flawed about the idea of online grocery shopping, as a host of other retailers have since proven. Rather, Webvan's massive failure was based on a whole series of flawed and untested assumptions around the customer value proposition, the economic engine, the value of partnerships, and the product and service offering.

Business history is full of such examples: from Coca-cola's infamous "New Coke", to GM's all-electric EV-1 project (which cost a billion dollars and sold only 700 vehicles), to all those other empty dot-com business models in the late 1990s - like Pets.com - that quickly disappeared. The lesson from all these disasters is to look before you leap. A company should first reduce the uncertainty surrounding critical project assumptions before committing irreversible and non-recoverable resources to an idea. The greater the uncertainty surrounding these assumptions, the greater the risk associated with any new opportunity. Therefore, the focus of an innovation project should initially be on learning rather than earning. It should be on launching experiments to test whether a business model makes sense or not, or whether a new technology will work or not, or whether customers would value the new service, or what they would be willing to pay for it, or which product configuration would work best, or which distribution channels would be most effective, and so on.

Clearly, innovation can never be risk-free. But the process of validating or invalidating these critical project assumptions should stop you from ever completely misreading the basic economics of an opportunity. It will make sure that hubris never gets the better of humility.



Rowan Gibson is a global business strategist, a bestselling author and an expert on radical innovation.

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Thursday, July 30, 2009

BOF 3.0 - Ruffle Your Innovation Feathers

I had the opportunity to attend Brightidea's Birds of a Feather (BOF 3.0) event at Chevron's headquarters the other day. For those of you not familiar with Bright Idea Birds of a Feather events, they are periodic events for innovation practioners from Brightidea customers (e.g. HP) and non-customers (e.g. Chevron) to get together to discuss innovation challenges and share practical experiences peer-to-peer. The third incarnation of BOF was hosted in Chevron's 'Innovation Zone' - a flexible space used to inspire creativity where:
  • everything is on wheels

  • the space can be used for multiple purposes (including prototyping, recruiting, training, sharing)

  • people can experiment with co-location of groups

  • informal meetings and mentoring can take place when the space is not scheduled

The day was a mix of presentations from Chevron and HP and unconference open-sharing sessions, interspersed with breaks for people to just talk one-to-one with colleagues from other companies.

The Chevron Kickoff

Peter Breunig and Jack Anderson of Chevron shared their thoughts on innovation and ingenuity (a Chevron value). These included:
  • Innovation must be focused on business strategy - For Chevron this means (finding oil, getting it out of the ground, and boiling it)

  • Team-based innovation often requires convincing people that all want to be Michael Jordan, that being Scottie Pippen or Dennis Rodman is cool too and will help the team succeed (everyone has a role).

  • You must maintain a crystal clear business focus or derivative projects can distract you

  • When it comes to innovation - "Don't be afraid to let your horses run"

HP and The Garage

Art Beckman of HP spoke about HP's innovation management system that they have named "The Garage." In the words of HP, innovation management ultimately strives to systematically gather, organize, and collaborate on ideas. The innovation management push at HP is not just a way to improve management of innovation ideas but is also a push to bring together software and solutions people together to be a stronger team. The effort is helping to break down silos and encourage collaboration across geographies and functions.

HP is focusing on creating an innovation federation instead of a top-down model. The Garage team has been championing the model in advance of its rollout to build awareness and is putting the best model in front of the federated states that they can so that people want to use it (because they don't have to use it).

HP has innovation program leads in place in each business unit as the first step of their strategy. HP has created a process for funding ideas into action and is building out an incentive system for employees and executives too. Recognition may be the most important thing, but incentives don't hurt in HP's opinion. Innovation report cards and celebrating innovation successes also factor into their strategy.

HP has three people in The Garage dedicated to implementing the innovation management solution, and 15 Innovation Program Leads (some part-time - some allocated full-time), and some of those with big business units might have their own sub-level of Innovation Program Leads.

HP is looking to eventually take their internal innovation management solution externally to customers.

Open submissions are the trickiest part (ideas not submitted to specific innovation challenges) because they often end up generating answers to questions that nobody is asking. It is also a lot more work to get the business involved on these kind of open submissions, where innovation challenges generate ideas focused on a guiding question/problem.

HP has begun involving the business earlier in the process so that the Garage doesn't waste time evaluating or collating it. HP puts a lot more emphasis on campaigns and are putting together a repeatable process for getting a campaign up and going as fast as possible. HP is primarily focusing on generating ideas that are connected to the business (or a business unit).

The key is to get the problem for a challenge properly framed and make it visible to the organization through as many channels as possible. To that end, HP hosts webinars on the challenge, and are also experimenting with running in-person or virtual brainstorms on the challenge topic.

To maximize the success of any innovation management system, you should seek to involve the people who feel they may not have ideas to share, but may have comments or opinions to contribute on submitted ideas. Everyone has different innovation strengths. HP is utilizing a belt system (black belt, etc.) metaphor for showing and recognizing the people who are contributing.

Questions

How do you keep revolutionary ideas that might not have a business owner from being killed?
  • The Garage team works on these, but the Garage team can't carry the idea the whole way

Two pushbacks an audience member:
  • Why do ideation sessions if we don't necessarily have the money to develop the idea right now?

  • I already have enough good ideas that I can't develop, why should I generate more?

How many focused campaigns do you think you can really run in a year?
  • Probably in the 3-5 range (about one per quarter)
  • Try not to ask the same people all the time to submit to multiple challenges in multiple locations

  • They try to spread around the live challenges across several business groups

How do you integrate the work of HP Labs with the work of Garage and the business units?
  • HP Labs is invited to the challenge and the Innovation Program Leads and other people in the business unit also work with people in HP Labs

Braden Kelley Insights

Different groups have different participation rates. Could this be a leading indicator on the level of trust or performance in a group? Groups with low participation rates could have low employee engagement, and may have a need for some extra attention to revitalizing the culture and trust in that particular group. This would be worth exploring - potentially matching up participation data with employee survey data.


More from the Brightidea Birds of a Feather (BOF 3.0):



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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BOF 3.0 - Innovation Fatigue Session


The second of the Brightidea Birds of a Feather (BOF 3.0) unconference discussion sessions I attended posed the question - Is there such a thing as innovation fatigue?

Here are some of the key insights and comments from the session:

  • You can't run people in crisis mode forever. If you create an innovation panic, your people and organization will get innovation fatigue.

  • How can you throttle up and down both the top and bottom of the innovation funnel?

    • Sometimes you accumulate too many ideas to develop, and other times you don't have enough.

  • Any innovation approach should pay attention to the pacing and have learning built in (a feedback loop)

  • How much change can people handle?

  • Should innovation be part of the regular job for everyone in the organization?

  • Should you have an annual innovation plan?

  • Would more than two innovation jams per year be too much?

  • Should ideation really be fully separate from implementation?

  • Is it possible for people to not have enough time to innovate AND to have innovation fatigue?

  • If the cynicism starts, you're in trouble. Innovation efforts have to show tangible results to receive continued support.

  • It can be empowering to line managers to have someone owning and driving innovation.

Overall for me the key takeway was that a structured approach to innovation is needed that clearly lays out:
  • Why innovation is important and that it is never 'done'

  • The organization's innovation strategy and goals (yes they are different)

  • The organization's innovation policies and processes

  • The employees' role in innovation, how to contribute, and why to contribute

  • How progress will be measured and results will be communicated

What are your thoughts or experience?


More from the Brightidea Birds of a Feather (BOF 3.0):



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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BOF 3.0 - Culture of Innovation Session


The first of the Brightidea Birds of a Feather (BOF 3.0) unconference discussion sessions I attended posed the question - What are the key elements of building a culture of innovation and what is the leader's role?

Here are some of the key insights and comments from the session:
  • There was a great deal of discussion around the role of the leader in creating a culture of innovation by being a direction setter, venture-capitalist, talent scout, mentor, and silo-buster.

  • It was also felt that is was important that respect for people be demonstrated or the culture will not change.

  • Accountability vs. Authority - Often times people are made accountable for achieving innovation gains, but are not provided the authority to actually work to make it happen.

  • "You are going to inspect what you expect."

  • It is important to strike the balance between operational excellence and ideating/initiating growth

  • It is worth considering the use of open book management so that people can better understand how to contribute to the organization's success

  • Innovating within an ecosystem versus innovating within a company

    • How do you enable more nodes in the network to collaborate?

    • Defensive IP management is restrictive to innovation

    • I need to move from IP defense to IP offense

    • IP and IT and Finance are often anti-business teams (they work against innovating fast)

  • We explored the concept that the leader should only have the role of driving change (versus maintenance or command & control)

  • Leaders must understand that tomorrow will be different than today and that when you start trying to protect today - you are dead

  • What signals are your corporate policies sending to employees about innovation?

  • Leaders are responsible for strategic clarity - this applies to innovation too

  • Do leaders need to change their focus from shareholders to employees if they want to drive innovation?

  • Does a leader enable people to take risk? ("If you don't fall down skiing, you won't get better")

    • Adobe has a program to allow executives to bet their bonus on ideas they believe in

    • SAP is trying to implement a mulligan policy to encourage people to take innovation risks


Overall the session was very lively, with good discussion. People definitely want to create cultures of innovation in their organization, and are finding their way there little by little. Ultimately, you don't make an innovative culture, you make changes to strategy, policies, processes, systems, and training that cause slight changes in people's behavior that over time can effect how innovative a culture becomes.


What things in your mind help to make a culture more innovative or restrict it from being so?


More from the Brightidea Birds of a Feather (BOF 3.0):



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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BIF-5 Ticket Contest Finalists Announced


Lots of people wanted the chance to win a $1,200 ticket to the Business Innovation Factory (BIF-5) conference October 7-8, 2009 in Providence, RI, but here are the best entry submissions, the Three Finalists:

  1. Creating a Bachelor of Innovation by Dr. Terrance E. Boult, University of Colorado at Colorado Springs

  2. Breaking Innovation Barriers by Looking Beyond by Vyoma Kapur, Colspark LLC

  3. A Nightmare on Innovation Street by Brad Barbera, KAB Business Research

Voting is now open and you can vote for your favorite entry in one of two ways:
  1. Vote by adding a comment to the 1 of 3 blog posts you like best

  2. Vote by sending an @reply with "I vote for #x" to @innovate on Twitter

July 31, 2009 - Voting by Twitter @reply to @innovate or by blog comments concludes at 23:59 (no anonymous votes will count)

August 1, 2009 - Grand Prize winner announced


If you're unfamiliar with this excellent event, here is a video of Jason Fried, Founder of 37Signals.com from last year's conference (BIF-4):



For those who just want to go to the conference - as a special bonus for my loyal readers I've negotiated a special $50 discount when you enter "BK110" in the payment code field on the payment options page during registration - this will get you in for $1,150. Groups of five or more can get extra discounts.

New storytellers are added each week, but so far they include:
  • Don Tapscott, "Wikinomics"

  • Jeff Jarvis, "What Would Google Do?", buzzmachine.com

  • John Maeda, President, Rhode Island School of Design

  • Jonah Lehrer, "How We Decide"

  • Keith Wilmot, Global Director Insights, Ideas & Creativity, Coca Cola

I look forward to awarding one lucky winner a ticket to Business Innovation Factory (BIF-5)!
(NOTE: Travel expenses are NOT included and are the responsibility of the winner)

If you'd like to explore and discuss innovation issues further, please join our Continuous Innovation group on LinkedIn.



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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Wednesday, July 29, 2009

Creating a Bachelor of Innovation

This is Finalist #1 of 3 in the Business Innovation Factory (BIF-5) Ticket Contest
  • Vote for this entry by leaving a comment or sending an @reply to @innovate on Twitter with "I vote for #1" in it.



This entry is about a ongoing educational innovation, a paradigm shift, offering new degrees with a common core focused on teams of students learning and practicing the key elements of the innovation process. It crosses department and college boundaries and changes the product at the very core of the university, replacing the centuries old BA and BS educational silos with a new Bachelor of Innovationâ„¢ (BI) degree family with a core built around multi-disciplinary multi-year teaming with real companies.

In business, innovation from new startups is common, maybe even the norm. Yet people almost exclusively look/point to the old estabilished research universities when it comes to innovation. Many among the academe, and even the government and public, mistakenly consider research universities cornerstones of innovation. They confuse invention and innovation. As Ray Mears of 3M has stated back in 2001, "Research is the transformation of money into knowledge - Innovation is the transformation of knowledge into money!" The top 100 universities produce and teach knowledge and research, not innovation. When innovations spring forth from universities it is usually because there is a concentration of the innovation raw materials - an abundant diversity of ideas and people. Innovation happens in spite of the university's educational programs, not because of them.

I had tried, with limited success, to introduce ideas changing how and what we teach, first at Columbia University and then at Lehigh University, where one administrator's response was along the lines of "why should we change, we've been doing it this way for over 100 years and are doing well." Classic market leader innovation blindness. Looking deeper one sees that despite the research output, universities are, with only a few exceptions, the antitheses of models of innovation: they cling to centuries old models of how to operate and what "products" to offer. A "new product" takes 4-6 years to produce and 2-5 more for market assessment after release, so change presents serious investment and risk. Academic processes change slower than the ivy growing over their buildings.

The barrier to our innovation was the long product cycles, ultra-conservative and territorial model of universities combined with their sense of superiority and resistance to change. So how did we successfully achieve the Bachelor of Innovation family of degrees? The answer, not surprisingly, was to look at the proven innovation processes we would be teaching and adapt/apply them to the university:

  1. First, find somewhere where the culture is partially willing to embrace change and innovation. I moved from being the endowed department chair at a stodgy top 40 university to a young aggressive growth university, the University of Colorado at Colorado Springs, where I saw the core quality/talent with the potential for accepting change.

  2. Start off in "stealth mode". I quietly laid the groundwork for the change, introducing key elements as small changes and proving they would work.

  3. Design a Value Innovation strategy by identifying elements of performance and the most important customers then analying their needs and designing using the new performance dimensions to deliver more value to the customer. This included developing story lines designed for each different customer segment and major personality types in those groups.

  4. Form an initial team that engaged key influencers and administrators in discussions on program elements and implementation issues, all to ensure high-level management engagement and buy in. We needed them to develop ideas on their own (often being led into them) so they could take ownership of the ideas and champion the process.

  5. Gather market data, including asking the hard questions about competitive (dis)advantages. That market research introduced a new space of possible ideas to the broader community who in turn put pressure on many otherwise uninterested people in the organization to take change seriously. People like to think they know what the market needs. Real data is sometimes a critical revelation.

  6. Seek external validation and seed funding. We went after, and won, grants from NCIIA and NSF Partner for Innovation Program.

  7. Design to co-exist with existing product lines and minimize the number of people impacted by implementing the change. Build strong support and minimize detractors.

  8. Anticipate roadblocks and develop strategies and partners to ensure one can get through or around them. We capitalized on strong external fiscal threats to catalyze open discussions and negotiated with stakeholders, initially asking for an idealized package, but settling on something that was still very viable.

  9. Build on market data and the early success, to develop an exciting pitch backed with a detailed business/program plan. We used these to sell the BI in the many-stage campus/state approval process. The pitch was for the intuitive types where passion and ideas matter most. The detailed 60-page plan addressed the data-driven, judging people, which seem to dominate academia.

  10. Under promise and over deliver, while aggressively managing growth and resources. The result, our BI Family of degrees, is a unique program focused on teaching innovation, with awards from the American Society of Engineering Educators, and Innovation India. Our growth has been more than double the initial plan, with over 120 students across five majors. We have more partner companies, and have had more funding for student teams than we have had qualified students willing to work for pay.

Does the BI work? Only time will tell for sure, but the first two years have exceeded almost everyone's expectations. In our first term we had one team's first business plan get "defunded" at the first pitch half way though the term, only to have their second idea/pitch be good enough that we then partnered with a local company to go after, and win, a $100,000 Navy SBIR contract. The freshman/sophomores produced about 80% of the project's deliverables, and the company has asked the BI to partner on other contracts. In the past year, student teams have supported over $2M in grant/contract proposals, with multiple ongoing funded projects. Not bad for a "startup" program of freshman and sophomores at a campus founded after the microchip, word processing, hypertext and the mouse were already invented.

Maybe we can partner with your organization to help support your innovation, as we transform the next generation of students into experienced innovators.



Dr. Terrance E. Boult is the El Pomar Professor of Innovation and Security at the University of Colorado at Colorado Springs, and @dr_innovation on Twitter.

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Breaking Innovation Barriers by Looking Beyond

This is Finalist #2 of 3 in the Business Innovation Factory (BIF-5) Ticket Contest
  • Vote for this entry by leaving a comment or sending an @reply to @innovate on Twitter with "I vote for #2" in it.



If you are a scientist or an engineer, you know firsthand that innovation is neither inexpensive nor straightforward. It is a long convoluted process that starts with investing copious amounts of money into scientific and market research. Furthermore, the desired end result is not always guaranteed. Several projects, if proven less than commercially viable, are halted before they even reach the developmental stage. Others that make it through the new product life cycle take years to be completed.

The importance of innovation is apparent everywhere. Companies need to constantly be in innovation-mode to remain competitive and become more productive. Government and non-government organizations, too, need to embrace innovation to progress forward.

So when innovation doesn't come easy, what can a company do? What can large multinationals manufacturing hosts of products do to prevent being "out-innovated"?

Proctor and Gamble was in a serious situation. At the turn of the millennium, its R&D productivity had somewhat stabilized, yet costs were increasing beyond top-line growth. Inflationary effects were being seen in everything, from labor costs to prices of equipment and raw materials Their existing innovation model, where pretty much everything from conceptualization to development was done in-house in their global research facilities, was proving to be costly.

The P&G management made a bold but wise move. It broke through its "invent-it-ourselves" model and started looking for innovation beyond its walls. It started actively tapping into the open innovation marketplace for patentable research projects. By offering prizes for valuable research data, inventions and other milestones to innovation, P&G was suddenly attracting qualified scientists all over the world.

Open innovation sounds like a rosy concept, but there are several challenges in adopting that model. For one, building awareness and reaching out to the right crowd of industry leaders with total credibility cannot happen overnight. Even for a Fortune 500 company such as P&G, building a global network of professionals in itself requires time and resources. It took P&G years to identify and grow its network of technology entrepreneurs, suppliers and scientists. Not only that, P&G was also tapping into other R&D companies to license research studies which did not get carried to the developmental stage.

To make things easier, P&G approached a third party agent, InnoCentive. The poster child of open innovation and crowdsourcing, InnoCentive provides research and development driven companies with an avenue to leverage its global pool of talent. With over 150,000 members possessing a variety of backgrounds and expertise, InnoCentive was an incredibly powerful tool for P&G to find solutions.

InnoCentive gave P&G the ability to post challenges at any stage of the development lifecycle. Hence, it can engage outside solvers across four different stages of the product development process - ideation, design, product prototype and final product delivery.

Partnering InnoCentive enabled P&G to circulate its technology briefs around in its network and receive hundreds of proposals for each. After careful evaluation, if a solutions is found, P&G's business development team contacts the producer to begin negotiations for licensing, collaboration or other deals.

A number of successful innovations have resulted from the P&G's open innovation efforts. Here are some remarkable ones:
  • P&G wanted to boost sales of Pringles potato chips. Its executives came up with a unique idea - to print trivia questions right on the chips and lure consumers into buying them for more than just the taste. To do that, however, they needed ink which wasn't only edible, but that did not break or change the taste of the chips. They did not know if it was worth investing into R&D for this unproven idea. So P&G sought solutions through global networks of scientists, academia and researchers. Eventually, an Italian professor came forth. He already had the ink-jet technology to printing images on cookies and cakes with edible dyes. P&G engaged him and adapted his technology to Pringles potato chips at a much smaller price and time scale.

  • In 2006, there was another product upgrade P&G wanted to develop. It wanted to product a "smart" dishwashing detergent, one that effectively displays when the amount of soap dropped into to a sink full of dirty plates is optimal. As with the first challenge, the in-house research required for this project was colossal. Through InnoCentive, P&G found a solution. Another Italian came up with a whole new invention. Right from her home laboratory, she created a dye that would turn the dishwater blue when the right amount of soap is added. For this ingenious solution, P&G awarded her $30,000 in prize money.

  • Another successful product was invented when an open innovation technology entrepreneur recommended a special material to P&G. The material, a type of foam produced by a German chemical giant is used for soundproofing and insulation in factories. Seeing that it was being sold in Japan, the entrepreneur contacted P&G wondering if it could be of any other use. P&G, recognizing its potential, approached the German firm to license the material. What followed was incredible- P&G and the German firm co-developed a hit product, the Magic Eraser.

In 2000, only 15% of P&G's new products had elements that came from outside the company. Today, the figure has gone up to 35%. Academia, subject matter experts, government laboratories, and research institutes all over the world are working with P&G to create and license their product innovations. By reaching out to a global pool of talent, P&G has truly overcome several barriers to innovation.


References

http://www.federicibusiness.com/images/Federici_PG0208.pdf

http://hbswk.hbs.edu/archive/5258.html

http://www.reuters.com/article/pressRelease/idUS215811+22-Apr-2008+MW20080422



A marketing professional turned entrepreneur, Vyoma avidly supports and practices open innovation. Earlier this year, she founded Colspark LLC (www.colspark.com), a crowdsourcing platform to help companies tap into student talent for ideas and solutions.

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A Nightmare on Innovation Street

This is Finalist #3 of 3 in the Business Innovation Factory (BIF-5) Ticket Contest
  • Vote for this entry by leaving a comment or sending an @reply to @innovate on Twitter with "I vote for #3" in it.



"Start where you are. Use what you have. Do what you can."
- Arthur Ashe

Picture this. You're in a large, dark basement. You need to find your way out before the boogeyman gets you. You've watched this boogeyman get people you know, people like you. The threat is real, and imminent. While fumbling around for a light switch that you can't find, you stumble upon a pack of matches. You know that a match will not possibly light the entire basement. It may just light up a corridor that looks promising, but leads to a dead end. It may serve as no more than a signal to the boogeyman of where you are. But sitting in the total dark doesn't seem like the best of options, either. Your heart pounds, almost audibly. What do you do? Do you light the match and see where it can lead you? Or do you remain in the dark until you find the light switch?

If you are operating under tight resource constraints (and these days, who isn't?), you may recognize that this is the innovation world you face every day. You desperately want to - need to - innovate, but you are in the dark about emerging technologies, consumer trends, and competitive movements. Optimally, you'd like to throw on the light switch and see clearly into all of those areas, but the costs of market research studies, consumer testing, innovation management software, and outside consultants are beyond your reach. You can study innovation best practices, but how do you implement processes that come from the perspective of an organization that has more global R&D centers than you have employees?

Before trying to answer that, let's evaluate if this is really a general problem worth worrying about. Here are some statistics from the US Small Business Administration:
  • Small businesses represent 99.7% of all US employer firms.

  • Those small businesses employ about half of the US private sector workforce, and 40% of the high-tech scientists, engineers and computer workers.

  • Small businesses generate over 50% of the innovations that come from US companies

According to research by the National Federation of Independent Business, the top concerns among independent business owners are business costs - particularly those such as health insurance, energy and inflation. Those things must get paid before any investments in innovation. This really is a crucial dilemma faced by the majority of the business world.

History has much to teach us about situations in which an individual or group must battle against bigger, better-equipped adversaries. Think David vs. Goliath. Leonidas vs. Xerxes. William Wallace vs. Edward Longshanks. Rocky Balboa vs. Apollo Creed, Mr. T, and Drago the Soviet Giant.

On the political battlefield, it's called guerrilla warfare. Translated to the innovation space, this viable and important strategy is "Guerrilla Product Development." Adapting the lessons of guerrilla warfare to innovation leads to a number of important tactics:
  • Arming your personnel with the resource of time.

  • Learning astute anthropological observation and online survey tools.

  • Leveraging available online information.

  • Engaging actively in online social networks.

  • Listening to and using customer feedback.

  • Building a network of thought leaders and experts can advise you.

  • Conducting ideation and concept development by training internal facilitators.

  • Enhancing rapid decision-making and adaptability.

  • Attacking niches that bigger players overlook or avoid.

While space does not permit a full exposition of such tactics, let me offer some true success stories of such guerrilla NPD.

While developing innovative ergonomic products, a business team wanted to get into the minds of ergonomists and purchasers of ergonomic products. Taking the standard research approach was going to cost tens of thousands of dollars, which was tens of thousands more than was in the budget.

Time for guerrilla tactics! An ergonomics convention was taking place in Las Vegas. After the team developed a questionnaire, a team member flew out to the convention. Armed with $250 in poker chips, this guerrilla operative stood outside the event and offered a $5 token to anyone willing to spend ten minutes on a survey. During the two-day event, over fifty professional ergonomists, consultants, and corporate representatives were interviewed, often volunteering far more than the requested ten minutes of their time. The interviewer, having both subject matter and specific business expertise, was able to probe deeply on questions that arose during the interview process. The total cost was less than $1,000 in expenses, while the information was worth tens of times that.

When resource constraints prohibited the use of outside market research, a business team became their own ethnographers. Forming pairs of cross-functional colleagues, including engineers, designers, marketers, and supply chain professionals, the group networked with local businesses, suppliers, and customers. At the cost of a few business lunches, some personal car mileage, and $100 in digital voice recorders, critical information was gathered, synthesized it into key unmet needs, and translated into unique new products that you will see in the market in the not-too-distant future.

When purchasing relevant market data was cost prohibitive, another business team conducted internal online research. The hard work was not in collecting the information, but rather in piecing the information together into a cohesive whole. The results of that research led to a successful entry into one profitable and growing business category, while wisely avoiding another category that started out with promise, but went quickly into decline.

These guerilla tactics are like matches in the dark. They are not intended to replace the light switch, but rather to provide whatever light is available when that switch is not an option. Please note that any financial cost savings don't come for free! The financial costs are replaced by opportunity costs. For example, when engineers are engaged in market research, it is at the expense of their engineering time, for which they are presumably better trained and inclined. These suggestions are not intended to replace traditional methods, but are rather meant to supplement them.



Brad Barbera is the founder of KAB Business Research, a consultancy focusing on Innovation Training, Ideation Facilitation and Management, and Business Intelligence.

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LinkedIn or Ning for Innovation Community?

Which do people prefer for sharing interesting news, articles, videos, and all around community - Ning or LinkedIn?

I created an Innovation Community a year ago on Ning and to date it has 42 members.


Ning had a lot of promise when it first came on the scene, but I'm not sure that it has a bright future because it hasn't found a way to make itself an integral part of people's lives.

I created the Continuous Innovation group on LinkedIn two months ago and it already has 470+ members.


LinkedIn groups don't require people to join yet another social network and build yet another profile (most people are already members of LinkedIn - or should be). LinkedIn is part of many people's routine, and if it's not they can sign up to receive a daily or weekly digest of group activity by e-mail.

LinkedIn groups may not offer all of the functionality of Ning groups, but they do offer discussions, job postings, and the ability to share news articles or other links. I think that's good enough.

What do you think?

Care to discuss this in the Continuous Innovation group?



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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Creating a Culture of Innovation


I define innovation as an "organization's ability to adapt and evolve repeatedly and rapidly to stay one step ahead of the competition." A culture of innovation, when done right, gives you a competitive edge because it makes you more nimble with an increased ability to sense and respond to change.

A culture of innovation has less to do specifically with new products, new processes, or new ideas. There are of course discrete innovations such as the iPhone or a battery that is powered by viruses (MIT has developed this). These are valuable and necessary in order to create a culture of innovation.

But a culture of innovation is more than new ideas. It needs to be repeatable, predictable, and sustainable. This only happens when you treat innovation like you treat all other capabilities in your business. This means having, amongst other things, a defined process.

An organization's innovation process must achieve three things. It must:
  • focus on the "right" challenges

  • find appropriate solutions to those challenges, and

  • implement the best solutions.

These translate into three "portfolios" an organization must create:
  • A portfolio of challenges

  • A portfolio of solutions

  • A portfolio of projects

Let's take each one at a time.


A Portfolio of Challenges

All companies have challenges. They can be technical challenges on how to create a particular chemical compound. They can be marketing challenges on how to best describe your product to increase market share. They can be HR challenges around improving employee engagement.

An organization's ability to change (i.e., innovate) hinges on its ability to identify and solve challenges. Challenges are sometimes referred to as problems, issues, or opportunities. But at the end of the day, they are all just various forms of challenges. I will use these terms interchangeably here.

Where do you find these challenges? You can find them anywhere - from customers, employees, shareholders, consultants, vendors, competitors, and the list goes on.

Let's face it, companies have no shortage of challenges.

And guess what, some of the most important challenges to solve are hidden due to organizational blind spots and assumption-making.

The "meta-challenge" for all organizations is to find which challenges, if solved and implemented, will create the greatest value. Given that organizations have limited resources and money, prioritization is critical.

My favorite quote (used many times in this blog) comes from Albert Einstein - "If I had an hour to save the world, I would spend 59 minutes defining the problem and one minute finding solutions." Most companies spend 60 minutes of their time finding solutions to problems that just don't matter.

Therefore, the first step in creating a culture of innovation is to surface, identify, and codify challenges. And then you must become masterful at valuing, prioritizing, and framing these challenges.

Think of your innovation portfolio much like you would handle a financial investment portfolio. You want some safe bets (incremental innovation) and some riskier investments (radical innovation). You also want a variety of innovations ranging from technical challenges to marketing challenges, and service challanges to performance improvement challenges.

Once you have the right challenges to solve, the next step is to find solutions.

A Portfolio of Solutions

Every challenge has multiple potential solutions. And there are multiple ways in which to find these solutions.

Some challenges are solved in the moment by the person who thinks them up. Most challenges in fact are solved this way. These challenges tend to be "unarticulated" in that they are not presented to the organization as a problem to solve.

Other challenges are more complex and require specialized expertise. You need to find the right person(s) with the right knowledge.

Others require less technical expertise and are solved through creative thinking.

For each challenge, you need to first determine which mechanism would best yield a viable solution. Approaches include, but are not limited to...

  • Internal Individual/Team: This is the most common way challenges are typically solved. This is when you use internal resources whose job is to solve these types of challenges. For example, this would be the development team members assigned to a particular product. They are paid to solve their product development challenges. Brainstorming is often the tool of choice.

  • Internal Crowdsourcing: Sometimes the best solutions are found by people who typically do not work on this problem. It might be a customer service representative finding a great new branding idea. Or maybe it is tapping into R&D people who are in different parts of the organization. Sometimes this can be achieved through company-wide competitions. Read my article on how reality TV show type competitions can be used to stimulate creativity.

  • Outsourced (External Single Source): Some challenges can be solved (and potentially implemented) by a third party who takes ownership for delivering the result. Typically, outsource partners are found through some type of RFP process. eLance.com is a well-known example of a platform that matches specific challenges with bidders who are able to solve specific types of problems.

  • External Crowdsourcing: Some challenges are best solved by a diverse group of external solvers who can independently work on a solution to your problem. In some circles, this is referred to as Open Innovation. InnoCentive and 99Designs.com are two good examples of this. A challenge is posted and solutions are provided by a wide variety of solvers.

These are only a few of the many approaches. If one technique (e.g., internal team) does not yield a workable solution), try a different approach (e.g., external crowdsourcing).

Regardless of which technique(s) you use, the result will be a portfolio of solutions for the given challenge. Depending on the technique you use, you may end up with a low signal to noise ratio. This is the ratio of a signal (what you want - that is, good ideas) to the noise (what you don't want - the duds). Your success is often based on your ability to separate the wheat from the chaff.

The next step is to strengthen and select the best ideas, combining them into a comprehensive solution. If you find a solution that works, the next step is to implement.

A Portfolio of Projects

The final attribute of a culture of innovation is the ability to take all of the selected solutions and turn them into programs/projects so that they can be converted from ideas into reality.

Elsewhere on my blog, I discuss many different ways of making this happen. Some of them include "Build It, Try It, Fix It" - an iterative development process where you learn by doing rather than analyzing. Other more "waterfall" type development approaches are more linear and rely heavily on analysis and testing (analyze, design, build, test, deploy).

Regardless of how you implement, without this step, you end up with lots of ideas on the cutting room floor, none of which create value.

During implementation, it is critical that you keep track of the value proposition for each project, having the courage to change direction, or, in some cases, killing ideas altogether.

Bottom Line

A culture based on surfacing, solving, and implementing valuable challenges can make innovation repeatable and predictable. This requires more than just a process, it requires an entire innovation capability [read my perspectives on the innovation capability].

My mantra is, "When the pace of change outside your organization is faster than the pace within, you will be out of business." And as we all know, today's pace of change is crazier than ever. A culture of innovation, when done right, can give you a leg up in a highly evolving marketplace.

P.S. There are many different "techniques" that can be used at each stage of the process. Communities, social networks, customer-feedback systems, etc. These will be addressed more fully in future articles.



Stephen Shapiro is the author of three books, a popular innovation speaker, and is the Chief Innovation Evangelist for Innocentive, the leader in Open Innovation.

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Five Ways to Create Innovation Throughout Your Life

When innovation is brought up in a business context, we mostly think about, well, the business. We think of innovations related to products, business models, go-to-market strategies and the like. This blog does a great job of identifying and promoting specific strategies and tactics for accelerating and maximizing innovation through those and other business-specific contexts.

But your business strategy is just one of many places where the right innovation approach can create incredible, positive changes in your life. Imagine what would happen if you made a specific point to innovate elsewhere?

Here are five specific places and contexts in your personal and professional life that, with the same approach to innovation, can make you happier, more fulfilled and more successful.

1. Innovate Your Career

Are you doing what you want to do? Are you learning new things every day? Do you feel comfortably challenged with the work on your plate? If not, it may be time to try something new.

If you were starting your career from scratch, knowing what you know now, what would you do differently? What risks would you take? How hard would you work in a different direction to achieve the job, the career or the business you dream of today?

What do you really want to be doing in five years? 10 years? Whatever that vision is, what do you need to do right now, this month, or at least before the end of the year to make progress towards that dream?

Playing with your career can mean playing with your livelihood, which is of course scary. But you spend at least 40 hours a week at work, working effectively on your career.

2. Innovate Your Management Style

How are you making your direct reports as productive, successful and satisfied as possible? For those who don't work directly with you, how are you enabling them as best as possible to achieve their goals, and make both you and the company overall perform better?

Are you actively mentoring future leaders inside your company? How about outside? When you get requests for your time to help someone learn - whether or not they work directly for you - do you take the time to do it?

Do you actively use recognition strategies to praise and motivate your team? Not just bonuses and coffee gift cards, but do those you work with know on a regular basis that you value their work?

Think hard about how you would be best learn, innovate and be motivated as an employee, and make sure you're innovating your management style to match that. Better yet, ask your employees directly how they learn, how they innovate, and how they’re motivated, and match that.

3. Innovate Your Personal Life

You do have a life outside of work, right? If not, let's start there. How are you staying balanced and refreshed so that you're working at your peak while on the job, but also living a rich, fulfilling life away from the office?

Put pen to paper and inventory the things you wish you had more time to do. If they're important enough, you'll make time for at least a handful.

What are the things you want to do in the next five years? Before you die? What are you doing right now to make those things possible? If you don't act now (or at least prepare to act), you'll never take advantage of the things you really want to be doing.

Explore that personal itch. Meet new people. Try new things. Mix things up.

4. Innovate Your Relationships

Think about the people most important to you - your family, your spouse, your close friends. Do you spend as much time with them as you want? Do you do the things with them you want to be doing?

Indulge me for a moment, and treat your personal relationships like a business problem. What's your goal? What does success look like? Envision what that relationship would ideally look like moving forward. Now what's your strategy to get there?

5. Innovate Your Future

OK, I cheated. This one's really a combination of the first four above, but is perhaps the most important. You can keep doing what you're doing today - follow the same career, keep the same friends, the same occasional convenient hobbies - and maybe that makes you happy.

But chances are, if you took a minute to think and innovate, you'd envision a world much different than the one you live now.

So what are you going to do about it?



Matt Heinz is principal at Heinz Marketing, a sales & marketing consulting firm helping businesses increase customers and revenue. Contact Matt at matt@heinzmarketing.com or visit www.heinzmarketing.com.

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Tuesday, July 28, 2009

Time for a Disruptive Business Model?

How disruptive is your business model? While much has been written about corporate vision, mission, process, leadership, strategy, branding and a variety of other business practices, it is the engineering of these practices to be disruptive that maximizes opportunities. Without a disruptive focus you are merely building your business model on a "me too" platform of mediocrity. As we move into the second half of 2009, nothing will be more critical to your efforts in increasing your revenue growth and corporate sustainability than understanding the value of disruptive innovation. So, in today's post I'll examine the power of disruption as a key business driver...

Disruptive business models focus on creating, disintermediating, refining, reengineering or optimizing a product/service, role/function/practice, category, market, sector, or industry. The most successful companies incorporate disruptive thinking into all of their business and management practices to gain distinctive competitive value propositions. "Me Too" companies fight to eek out market share in an attempt to survive, while disruptive companies become category dominant brands insuring sustainability.

So why do so many established and often well managed companies struggle with disruptive innovation? Many times it is simply because companies have been doing the same things, in the same ways, and for the same reasons for so long, that they struggle with the concept of change. My engagements with CEOs often focus on helping them to embrace change through disruptive innovation. As a CEO, I would strongly suggest you conduct a gut check during your next executive meeting by counting the number of times you hear your CXOs say things like: "That will never work," "We can't do that," "That's not my problem," or my personal favorite, "We've always done it that way." Don't allow your enterprise to adopt an attitude of complacency, because the simple truth is that complacency kills companies.

Let's just take a moment and look at what happens to companies that become complacent and fail to embrace disruptive innovation... Why didn't the railroads innovate? Why didn't Folgers recognize the retail consumer demand for coffee and develop a Starbucks-type business model? Why didn't IBM see Dell and Gateway coming? Why wasn't Microsoft able to keep Google at bay? Why have American auto-makers been relegated to inferior brands when contrasted to their European and Asian counterparts? How did the brick and mortar book stores let Amazon get the jump on them? I could go on-and-on with more examples, but the answer to these questions are quite simple... The established companies become focused on making incremental gains through process improvements and were satisfied with their business models and didn't even see the innovators coming until it was too late. Their focus shifted from managing opportunities to managing risk, which in turn allowed them to manage themselves into brand decline...

At one end of the spectrum take a look at the companies receiving investment from venture capital and private equity firms, and on the other end of the spectrum observe virtually any category dominant brand and you'll find companies with a disruptive focus putting the proverbial squeeze on the "me too" firms occupying space in the middle of the spectrum. With the continued rapid development of technology taking the concept of globalization and turning it into hard reality facing businesses of all sizes, it is time for executives and entrepreneurs to examine their current business models from a disruptive perspective. Ask yourself the following questions:

  1. Why should anyone be led by you?

  2. When was the last time your business embraced change and did something innovative?

  3. When was the last time you rolled-out a new product?

  4. Are your management and executive ranks void of youth?

  5. Do people in your organization laugh at new ideas?

  6. When was the last time you entered a new market?

  7. Are any of your executives thought leaders?

  8. When was the last time you sought out a strategic partner to exploit a market opportunity?

  9. Does your organization focus more on process than success?

  10. Are employees who point out problems looked down upon?

  11. Do you settle for just managing your employees or do you inspire them to become innovators?

  12. Has your business embraced social media?

  13. When was the last time your executive team brought in some new blood by recruiting a rock star?

  14. Does anyone on your executive team have a coach or mentor?

  15. Has anyone on your executive team attended a conference on strategy, innovation or disruption in the last year?

If you're an executive or entrepreneur and you can't put forth solid answers to the majority of the questions referenced above, then your company is likely a market lager as opposed to a market leader. If you continue to do the same things that you have always done in today's current market environment you will see your market share erode, your brand go into decline, your talent and customers jump ship, and your potential never be realized.

Albert Einstein said it best when he noted "the definition of insanity is doing the same thing over and over again and expecting a different result each time." Bottom line... don't be the CEO who causes your management team to continually say "the boss won't go for that one." If you lead from the front by inspiring change, innovation, and disruption your business will surely prosper in 2009.



Mike Myatt, is a Top CEO Coach, author of "Leadership Matters...The CEO Survival Manual", and Managing Director of N2Growth.

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Building a Better Innovation Business Model

Whether you're a professional innovator or someone driving innovation to grow your business, chances are you need more support to get projects delivered to market.

Question: Does your innovation business model catalyze your goals or crush them?

When You Have To Deliver, You Learn To Deliver

In 1999, Jim Collins wrote a brilliant piece in the Harvard Business Review, "Turning Goals Into Results: The Power Of Catalytic Mechanisms." In it he addressed the problem that many managers face within their organization: they have a big goal but lack the organizational focus and courage to achieve it. Collins offered catalytic mechanisms as a potential solution.

By his definition, a Catalytic Mechanism is "the crucial link between objectives and performance, [the] galvanizing devices that translate lofty aspirations into concrete reality."

His article provided some poignant examples that span a wide range of industries. For this discussion, I'll break his thesis down into a simple analogy: If you're standing next to a lake and you have to catch a fish to eat, you will catch a fish.

Collins posits that this same philosophy can be applied to business problems simply by framing a firm's most ambitious goals in this type of scenario:

  • Step One: Translate your objective (I would like to catch a fish) into an imperative (I will catch a fish)

  • Step Two: Give it real teeth (or I will die)

  • Step Three: Get to work (start fishing… with dynamite)

Our company translated this into a performance-based compensation model that provides us with a powerful catalytic mechanism - we needed to figure out how to generate true innovations quickly, consistently and across a wide range of categories.

And in so doing, it gave us a much better understanding of the core tenets of effective innovation.

Making the Leap from Idea to Marketable Innovation

There's a reason the number of ideas far exceeds the number of true innovations: The lightning strike is just the beginning.

Sure the blinding inspiration of a "eureka moment" is thrilling; but in reality, it's just the first step.

As any entrepreneur will tell you, the journey from conceptualization to commercialization is often when the real breakthrough thinking happens.

As a result, it's critical to have a well-defined understanding of what needs to be true for an innovation to get to market. Once you've defined "the how", the champion should surround herself with lateral-thinking people who can react quickly to new challenges without ever losing sight of the true vision.

Skin In The Game

The power of performance-based compensation is directly transferable to any innovation initiative. Giving people a material stake in an outcome will significantly increase your chances of succeeding.

Because when people need to eat, they will come up with brilliant ways to catch a fish.

Sometimes even without the dynamite.

For More

This video outlines benefits we've experienced with performance-based compensation:

http://www.youtube.com/watch?v=XO6NMOXoZf8&feature=channel_page



Pete Maulik is Chief Operating Officer at innovation consultancy Fahrenheit 212 in New York. Fahrenheit 212 delivers bigger ideas, faster to market.

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Monday, July 27, 2009

Innovation Internships

Business schools and companies need to create more internships dedicated to innovation. Most MBA internships continue to focus on traditional core functions like marketing, finance, and strategy. A few schools have innovation internships, but they focus on the technical and design points-of-view. The mainstream, non-technical B-School programs are missing an opportunity.

Innovation internships are a great way to infuse an organization with innovation process and techniques. The best internships allow the intern to learn from the company and the company to learn from the intern. The key success factors are: Selection, Sponsorship, and Structure.

  • Selection means picking the right student for the internship as well as picking the right company. Not all students or companies are suitable for this type of program. The intern needs to have advanced innovation training. This should include both innovation method training as well as organizational aspects of innovation. The sponsoring company needs to have a commitment to innovation and see it as a competency worth developing.

  • Sponsorship of the intern is essential. Without resources, focus, networking, and guidance from an engaged sponsor, the intern will flounder. Sponsors need to work closely with business school faculty to make sure the program is set up correctly, and that the intern is brought on board smoothly and effectively. Good sponsors keep projects on track.

  • Structuring the internship around the needs of the business as well as the needs of the intern is the final piece of the puzzle. Interns need to tackle relevant and difficult innovation problems within the business if they are to learn from the experience and create value for the company.

Here is an outstanding example of how to structure an innovation internship and select candidates for the position, from Sears:

POSITION SUMMARY
  • Our vision is to attract highly talented people to Sears Holdings and develop them into our future leaders

  • Candidates will report directly to a Senior Executive

  • Position will provide unique career development opportunities and exposure to the day-to-day issues and decision-making processes of senior management

  • Successful candidates will be presented with the rare ability to shape the future of a Fortune 50 company and will be empowered to create value across Sears Holdings

QUALIFICATIONS
  • Cross Functional Team Building Skills: Ability to build and align cross functional teams to meet common goals and achieve success

  • Champion of Change: Has a solutions oriented mind-set and works to initiate and drive needed change

  • Entrepreneurial: energetic and innovative; can lead new initiatives from idea generation to execution, develop business models, drive action plans to completion, and report results and learnings

  • Analytical: must enjoy gathering and digging deeply into data to identify issues and solve problems

  • Strong work ethic: self-starter able to demonstrate strong proactive approach and self-initiative; tenacious

  • Positive attitude: commitment to self-improvement and excellence
    Strong business acumen: strong financial, strategic, operational and leadership skills; ability to understand business models and key drivers quickly

  • Communication and interpersonal skills: confidence to interact with senior management and maturity to succeed through teamwork; willingness to learn from and coach others; ability to build strong relationships both internally and externally

  • Organizational skills: ability to manage projects and work effectively under tight deadlines

  • Focused on results: willingness to do what it takes to get the job done right

RESPONSIBILITIES
  • Develop close partnership with senior executives to help them fulfill their existing responsibilities as well as develop and define their future priorities

  • Champion innovation projects and lead new ideas from inception to execution

  • Serve as organizational change agents



Drew Boyd is Director of Marketing Mastery for Johnson & Johnson (Ethicon Endo-Surgery division). He is also Visiting Assistant Professor of Marketing and Innovation at the University of Cincinnati and Executive Director of the MS-Marketing program. Follow him at www.innovationinpractice.com and at http://twitter.com/drewboyd

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Strategic Creativity Isn't Expensive

Many conversations recently have addressed the misperception that creativity, by definition, takes time, money, and effort that can't be afforded right now because of the economy. A couple of examples:

  • Someone showed me a meeting announcement for an "ideation" session to which they'd been invited. It referenced the range of ideas under consideration as "creative and practical and everything in between."

  • A tweet in recent weeks said that while the sender wouldn't reject innovation, he would "say no to unique creative thinking."

  • Another forwarded email suggested a group shouldn't "over think" a topic "out of respect for time & resources. We can do that later when we can be more creative."

Arghhhhhhh!!!

Since when is practical the opposite of creative? And what types of pre-conceived ideas and misperceptions obscure the role creativity plays in contributing to business results?

The image below of three Ben & Jerry's ice cream flavors is another exhibit in showing the fallacy of the "creativity only in selected instances" point of view. Ben & Jerry's demonstrates the myriad benefits of strategic creativity with ice cream flavor names that:

  • Play on and twist the familiar (to help initial recognition and retention)

  • Are funny (introducing emotion, another element in improved idea stickiness)

  • On brand (completely consistent with something you'd expect from Ben & Jerry's)


These flavors had to be named something. It probably took little if any additional time to come up with names that clearly work for the brand's benefit vs. generic names that wouldn't.

The point isn't to go out and name everything and call it good. The point is that no matter what the economic environment, being strategic and creative doesn't decline in importance. It's MORE important.

Strong branding companies know this and act accordingly, while also-rans wait around for economic signals to suggest it's time to turn creativity back on. Their challenge is they probably won't make it until their creativity stop light flashes green again. And maybe that's just fine!



Mike Brown is an award-winning marketer and strategist with extensive experience in research, strategy, branding, and sponsorship marketing. He's a frequent keynote presenter on innovation and authors Brainzooming!

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Sunday, July 26, 2009

Culture Is as Culture Does - Enterprise 2.0

"We get frustrated when we hear "motherhood and apple-pie" lessons about Enterprise 2.0. I would have screamed had I heard one more speaker or seen one more tweet telling me "it's not about the tools, you know. It's about culture." Yes, we heard. We agree. But we are past this. Let's now talk about the nature of effective culture change. Let's get some Org-behaviorists in the community to help us. Not the ones who just tell us "it's about culture" - the geeky ones with real data, real insight, and specific advice we can take to understand what culture change really means."

- Gil Yehuda, Post #e2conf thoughts - installment 1

If only I had a nickel for every time an Enterprise 2.0 stakeholder used the word culture. The industry uses the word culture constantly in terms of describing when an organization is ready to implement social software. It has become something of a shibboleth, as Gil wryly notes above.

At a high level, it is indeed about culture. As in, if management has an attitude of "when I want your opinion, I'll give it to you", they're culturally not ready for social software. But the vast majority of companies are beyond that attitude, with nearly all embracing the concept of employees as their most important asset.

So in that context, what exactly does culture mean? There are degrees of readiness, to be sure. Do employees horde information to maintain a career advantage? Is the workplace style competitive, not collaborative?

The question of what exactly is meant by culture, got me to thinking about my own experiences thus far in the Enterprise 2.0 field. I'm by no means an organizational behaviorist, and I somewhat question what they can really overcome in terms of entrenched company cultures.

I put together the graphic below as a framework for thinking about things like culture and adoption. It's a process flow for pilot deployments of social software, based on some of my experiences. There are actually several different points included in it.



I'll start with this observation: unlike societies, culture inside companies can be changed in a relatively quick way. Senior executive mandates, the need for a paycheck and the fact that employees' work, where they put their personal skills on the line, is rated, provide powerful levers to alter practices in the workplace.

I won't say that it's right to consistently rely on these measures. But I don't think relying exclusively on emergent, viral adoption is right either. Employees' activities can be re-directed for the right reasons.


The use case


In the process flow, notice the opening decision: "Defined use case?"

Answering this question is a vital part of determining the impact of culture on the uptake of Enterprise 2.0. If the software has a place in helping specific tactical tasks, the cultural issue is less of a hurdle.

Take wikis for example. If a wiki has to compete against a portal, SharePoint, a shared drive, and/or email, and no one has defined a use case, it will likely fail. For a pilot deployment, a use case might be a specific project involving multiple people that will be executed exclusively through the wiki. It gets people using the wiki, and they know why. Then they can start to understand the benefits.

The goal is for a use case that's real, not some made-up activity for the sake of testing the software.

Company cultures are going to be more open to social software when there are defined use cases. Of course, that's not always the case. I've had experience with experimental deployments. They are harder, and are much more likely to run into cultural issues.


Who inside the companies cares about this deployment?


The answer to this question varies by the use case scenario. Where there is a well-defined use case, someone inside the company has signed off on using the software. Generally a manager at a more senior level. This means the deployment gets attention, and benefits from a greater range of resources. Its visibility is higher. The boss is tracking this.

In the experimental deployment, it takes a cadre of evangelists to push things forward. These are the early adopters, who see the opportunities of the social software. They are enthusiastic, and are the ambassadors for the pilot inside the company. What they lack in management attention they make up for in words and actions.


How does word spread?


When a deployment has senior management attention, the internal communications infrastructure becomes available. This is incredibly valuable. Announcements come through via email, and on the intranet. Posters go up, videos get made. Managers hold meetings. Contests are set up. It's a thing of beauty when the organizational infrastructure roars to life.

In the experimental deployments, without specific in-the-flow use cases, awareness is a bit tougher to come by. Often, there is a pilot group of employees that are designated to participate. The project lead and her fellow evangelists hold meetings, and send around their own emails announcing it. They may leverage tricks from the consumer web, such as exclusive invitations to drive up demand for participation. There is precedent for viral adoption strategies to work. Here's a case noted by Rachel Happe:

I heard two interesting use cases - one was that a company I spoke with introduced Yammer under the radar and had seen significant adoption (thousands of people)


Is culture a barrier?


So word is spreading, employees are trying out the new software. Are they sticking with it? Are they using it to help them with their jobs?

If they are, move on the evaluation tasks.

But culture as an impediment is too high level a reason. I wonder how much of culture is really a case of people continuing to use the same software and processes they always have. Why would they change? I like the way Microsoft's John Westworth put it in a LinkedIn discussion:

  • I have to ask where the motivation is. People use things like Facebook because there's an intrinsic motivation to do so. People go to work because there's an extrinsic motivation. Altruism doesn't pay the mortgage.

John puts his finger on it. Employees need a compelling reason to switch from their current habits.


Tactics for overcoming culture


When culture is proving to be an impediment, there are various tactics one can use to try to overcome it. The tactics vary for experimental deployments versus those with defined use cases. Their effectiveness is also quite different.

If the deployment has a defined use case and senior management sponsorship, the tactics available are quite wide and diverse. I've included a few of them in the process flow:

Remove alternatives: This is a heavy-handed, quite effective way to approach the culture issue. Banish the old applications and processes that employees have been using. Force them to work with the social software. Sameer Patel wrote about just such a case. A chip company forced its workers to use the company wiki by setting a policy of deleting all emails after 45 days. Want to keep that information? Put it on the wiki.

Storytelling: Senior executives outline their vision for what the workplace of tomorrow will be. They talk of efficiencies, growth, and new opportunities for career paths. In a recent Wharton knowledge article, BP's Fiona MacLeod said:

  • "Develop your killer slide to make your business case whenever you give a presentation. It's not only why you're changing, but what it's going to look like when you're done. People need to have a sense of what the future looks like, so be very clear on that."

Incentives: Drive usage of the social software by directing employee motivations with recognition and rewards. Maintain a leaderboard of top contributors. Celebrate breakthroughs that were expected to occur via the social software. Braden Kelley's review of "The Carrot Principle" includes explanations of the value of incentives in effecting change. Or companies could take it even further, following Andrew McAfee's suggestion that social software participation be baked into performance reviews.

Executive reminders: Timely, forceful reminders from managers are also effective. They are the mechanisms by which culture does indeed change. If employee usage is not at the desired level, executives make sure it's known what is expected. Anyone who has worked in large companies knows about these missives. Sometimes you've got to crack some skulls.

For the experimental deployments, employee inertia is harder to overcome. The internal levers to drive changes in behavior are not available. I've been in this situation with a previous job. Here are some tactics for overcoming culture in experimental deployments:

Model behavior: Project leaders and evangelists model the behavior they want to see. Need to send information to others? Write it in the wiki, and email the wiki page link. People want to reach you via IM? Turn your IM off and communicate via Yammer. In some ways, this is the bottom-up version of "Remove alternatives" described above. But it's a persuasion approach, because that's all that's available.

New use cases: The experimental deployments don't start with a crisp, in-the-flow 'real' business case. That doesn't mean there aren't use cases. It just may take some hustle to figure out some, and they are likely tangential to the needs of employees. For one experimental deployment at a previous company, I came up with 10 separate ways to use the platform. At the launch of the deployment, a software vendor and the internal advocates will come up with these use cases. Reminding people of these and creating new ones are tactics for overcoming culture.

Senior sponsor: After the launch, the pilot team attracts the interest of a senior manager. Someone who did not push actively for adoption initially. This person sees something 'there', and decides to promote it. This does not open up the panopoly of all organizational levers. But it does provide a boost in awareness and increase motivations for adoption.


Get the results


After the employees have (or have not) used the social software, it's time to look at the results. Again, there is a fork in the road for this activity.

The great thing about a defined use case is that you have a framework for evaluating the results. There was a specific job the software was hired to do. How'd it perform? Even better, the defined use case likely replaced some other process and (maybe) applications. So there will be results from the regular process against which to benchmark the deployment.

For the experimental deployments, collecting the wins is how results are measured. These are the stories of how the software helped someone. The information someone found that helped get a task completed. The turnaround time that was much faster than expected. The connections made with someone previously unknown in the organization. These anecdotes are the building blocks of an ROI.


What do employees think?


If the results are positive - either compared against the use case or via anecdotes - then getting employee perceptions of the software is next. If the results are negative, this is a step that's really not needed.

Employees are asked their opinions of:
  • The user experience

  • What they liked about the software

  • The software's general usefulness

  • Their interest in using the software in the future

  • The vendor

  • What could be improved?

This feedback is valuable from a cultural perspective. What's the main opinion of employees?

From all of this, the decision about whether to go with the software is made.


Culture is self-selecting


At a high level, culture is a self-selecting determinant of whether a company even pilots social software. If a company has a heavy command-and-control, execution-oriented culture, they aren't trialing social software. In that sense, it is all about culture.

But if a company feels it's ready to give social software a try, the culture-as-impediment argument loses steam. More likely, failure is a case of no defined use cases for the software. Stop laying the blame on culture.

Or as Yoda said in Star Wars: "Do. Or do not. There is no try."



Hutch Carpenter is the Director of Marketing at Spigit. Spigit integrates social collaboration tools into a SaaS enterprise idea management platform used by global Fortune 2000 firms to drive innovation.

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Saturday, July 25, 2009

iPhone Virtual Reality

Real and virtual worlds are about to collide in a big way.

In September with the expected release of iPhone OS 3.1, some pretty amazing augmented reality applications will begin appearing for the iPhone 3GS. These applications overlay useful info on your view of the real-world using the iPhone's camera. The new crop of augmented reality applications due in September make use of common features like an internet connection and GPS, but because they also utilize a compass, only users of the new iPhone 3GS will be able to install them.

There are several cool demos floating around which I have shared below, but these applications are using unpublished APIs which prevent them from being allowed on the App Store. Apple, however, told one developer that the tools necessary would become available in the pending iPhone OS 3.1.

Here is an application that shows the closest subway stations and how to get to them:





But, my favorite is this concept of an application that proposes to use facial recognition to overlay people's social networking profiles when the application is engaged. I hope they succeed in creating a working real world application based on this concept:





Finally, the innovations in augmented reality will not be restricted to the iPhone 3GS. A new augmented reality app called Layar is described as the world's first mobile augmented reality browser. The Layar browser currently runs on Google Android devices and shows you what is around you by displaying realtime digital information on top of reality through the camera of the mobile phone. Just flip through the directory to find ATM's, bars, houses for sale, hotels and other useful real world items around you.

While Layar is currently available only for Android devices, the developers are working hard on porting it to other platforms (read iPhone 3GS).

This video from the developer shows it running a real estate application:





What other cool applications can you imagine using this techology to augment the real world?



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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FREE - A Followup


FREE is an idea I've played with before. Now Chris Anderson, the brilliant editor of Wired and Long Tail advocate, has turned his attention to the four letter word that is shocking business people everywhere. I remember back in the day when sixties radical Abbie Hoffman titled his most famous publication "Steal This Book." What a title! It was a book about free - what was free and how to get it. What Hoffman considered worth getting for free says a lot about the times. We're talking free sandals, free communes, free smoke bombs, and gardening for free 'herb'. Hoffman's book even came with its own stolen Library of Congress catalog number! But while the idea of free is old, what is new is the way the digital world has made free a global phenomenon.

Chris Anderson's book "Free: the Future of a Radical Price" is less ambitious than "The Long Tail." It's more a journey through the digital world of FREE than an attempt to discover what it means or how it will change anything. As the recent demonstrations in Iran have shown, texting, tweeting, and 'free' journalism outdid the newspapers in terms of instant access to what was going on. This free media doesn't mean that newspapers have to pack up their tents, but it does mean they have to evolve.

My bet is that FREE will turn out to be like many other revolutionary phenomena and it will live in an And/And relationship with other technologies. The music industry is turning itself inside-out to cope with the free downloaders by getting faster, more flexible, and more responsive. Music is a tough, competitive business. Talent sparks everywhere, the barriers to entry are low, and choice is, for all practical purposes, limitless. No wonder FREE rocked here first and only now has newspapers, magazines, and books, in its sight.

Of course, FREE is a big part of human nature. Ask mothers who bring up children. Ask the millions of people who help out those who are less well-off. We live in a capitalist age but we need it to be the Capitalism of Inclusion. A world where people look after those who are close to them and watch out for those who fall along the wayside. With FREE opening up communications and creativity, sharing, and social networks, I believe it is helping to make the world a better place. The debate around FREE uncovers its potential to bring out the best in people. I believe we are already seeing this online and offline. FREE to a good home? Sounds perfect to me.

Image credit: Wired



Kevin RobertsKevin Roberts is the CEO worldwide of The Lovemarks Company, Saatchi & Saatchi. For more information on Kevin, please go to www.saatchikevin.com. To see this blog at its original source, please go to www.krconnect.blogspot.com.

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Friday, July 24, 2009

Innovation Conversations with Scott Anthony

I had the opportunity recently to interview Scott Anthony, President of Innosight and the author of "The Silver Lining" about a variety of innovation topics including: 'The Great Disruption', barriers to innovation, education, leadership, and commodity businesses.

Here is the text from the interview:

1. What is the biggest challenge that companies face in the Great Disruption?

I think the biggest challenge facing companies is an unwillingness to let go of the past. Companies have to come to grips with the fact that what made them great in the past will not make them great in the future. That doesn't mean they have to completely walk away from their heritage. But they to constantly question the status quo, think about the businesses they are not in that they should be, and be willing to walk away from businesses before they need to. It's a tough challenge.

2. What stands in the way of many companies being able to deliver new innovations to market?

Well, I think it is important to note that companies don't struggle with all types of innovations. Most companies excel at managing innovations that extend their core business. They struggle with innovations that run counter to their existing way of operating. Then, the greatest enemy lies within. We call it "the sucking sound of the core." A company's core systems and structures "want" an innovation to conform to what a company has done before, not what is necessary for success. The sucking sound makes innovation slow and complicated. To break the sucking sound of the core, companies need to make sure they have a "safe space" for innovation, and that senior leaders actively step in to break standard operating procedures when required.

3. If you were to change one thing about our educational system to better prepare students to contribute in the workforce of the Great Disruption, what would it be?

The one thing I would want to see students trained in is non-linear thinking. The era of optimization is over. We are in an era of constant creative destruction. Students need to learn how to find the non-obvious insight and to imagine possibilities that don't yet exist. I worry that an increased focus on standardized tests runs counter to the needs increasingly facing companies.

4. What skills do you believe that managers need to acquire to succeed in the Great Disruption?

The basic problem facing many managers is they are being asked to solve problems they have never faced before. You see, it used to be possible to have a productive 40-year career being an operator that did a great job executing a solidly formulated strategy. Today's leaders have to be great operators and great innovators. They have to pass that old F. Scott Fitzgerald test of holding two opposed ideas in the mind at the same time, while still retaining the ability to function. In simple terms, managers have to learn how to find the "and." Disciplined and creative. Love big businesses and small businesses. And so on.

5. What advice do you have for companies that are already loving the low end in a commodity business?

Companies that are already loving the low-end should think about innovative ways to extend and grow their business. One way to do so is to add on additional offerings that help customers solve additional problems they are facing in their lives. This could be a new feature, it could be a service. Another approach is to see if there are other markets where they can bring their low-cost acumen. A low-cost business model is a powerful weapon that companies can deploy in multiple markets.


As a special bonus, here is a video of Scott Anthony being interviewed about "The Silver Lining" by Business Innovation Factory's Chris Flanagan:





My book review of "The Silver Lining" can be found here.




Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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Book Review - "The Silver Lining" by Scott Anthony

A couple of weeks ago I received "The Silver Lining" by Scott Anthony in the mail. "The Silver Lining" is a relatively short, easy, and pleasant read. Scott introduces several different concepts in the book in addition to the main thesis - which seems to be that companies must prune their innovation portfolios, refeature their products to meet ever-changing customer requirements, and re-tool their organizations to better deal with the constant change that is becoming the norm in the world today.

The first concept that Scott introduces is a term to refer to the current economic dis-equilibrium - 'The Great Disruption' - and the rapid change that organizations face. Here is a great quote from the first chapter:

  • "The biggest silver lining for innovation is that the scarcity that is sure to result from the current economic climate is actually a good thing for innovation. Abundance is actually the root cause of many corporate struggles with innovation."

Another key focus of the book is detailing the importance of pruning your innovation portfolio. This a great analogy for re-evaluating your innovation investments, as often in cutting back selected branches you make the overall plant or tree healthier and allow it to grow stronger upwards. With innovation portfolios it is the same. Often many organizations allow too many projects to continue consuming resources that should really be 'pruned' so that those project resources can be re-deployed to help the remaining projects become more successful and complete faster.

At the same time, Scott Anthony makes the point that opportunities may exist for organizations to refeature products in ways that both reduces costs and increases sales. Pursuing this strategy can also reduce options available to potential disruptive competitors seeking to enter the market.

Smart companies will also use 'The Great Disruption' as an opportunity to re-tool their innovation capabilities and processes while also utilizing their potentially reduced innovation budget to conduct smart strategic experiments that could include exploring open innovation or low end opportunities ('learning to love the low end').

After describing how to love the low end (which is very similar to how companies should approach any disruptive innovation), Scott Anthony concludes the book with his thoughts on personal reinvention and his views on what's next for innovation.

Another favorite quote from the book (which I've heard elsewhere) suggests that you should staff up a disruptive innovation project or a strategic experiment with the best people you can find for each element (not the people that have been successful in the mainline business):

  • "Good entrepreneurs don't take risk, they manage risk."

Overall, Scott makes some good points about pruning the innovation portfolio, retooling the organization for better innovation success, and addressing the low end of the market that make the book a worthwhile read.


My interview with "The Silver Lining" author Scott Anthony can be found here.




Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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Thursday, July 23, 2009

Part 1 - The Power of the Question (Shanghai)


Lots of bad stuff happening in China right now. So let's talk about some good stuff. Like the design coming out of Shanghai.

Innovation, no matter where it occurs, always begins with a burning question (or questions), centered around "Is there a better way?" Artist-turned-designer Lu Kun has almost single-handedly put Shanghai on the international fashion map by pursuing three such questions:

Why doesn't China's clothing industry pay attention to detail? Why is it so cheap and uninspired? Why can't we do it differently?

Tired of his country being perceived as one big factory, Kun is on a mission to demonstrate that creativity and innovation are alive and well in China. His bold designs are doing just that. Drawing his inspiration from what he knows best - the streets of Shanghai - Kun's original creations are being hailed as elegant and imaginative, yet at the same time distinctly Shanghainese.

Undaunted by China's lack of a financial backing system for developing promising fashion designers, Kun has broken new ground. Until the arrival of Mr. Lu, no Chinese designer had achieved a presence on the international catwalk.

Kun did it in less than five years. How?

It's as if Mr. Lu took the advice of Sakichi Toyoda, who said: "Never try to design something without first gaining at least three years hands-on experience."


Kun's six-step path to innovation:

  1. Learning the basics of fashion design in a vocational high school.

  2. One year of cutting and sewing at a Shanghai tailor shop.

  3. One year at a startup Hong Kong label.

  4. One year teaching sewing technique and production design at LaSalle International Fashion School in Shanghai.

  5. Then out on his own as a personal fashion designer for wealthy individuals.

  6. And finally the design of an entire line of special occasion and upscale casual wear.

As with all great innovators, it's the power of the question that drives Kun's artistry.



Matthew E. May is the author of "IN PURSUIT OF ELEGANCE: Why the Best Ideas Have Something Missing." He is constantly searching for creative ideas and innovative solutions that are 'elegant' - a unique and elusive combination of unusual simplicity and surprising power.

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Crowdsourcing Delivers Personalized Innovation

The new dimension of innovation is about having customer as an integral part of the system. Firms can no longer afford to stay separate from customers and still come up with great innovations. The success of social media websites (like Facebook) is frequently attributed to engaging customers in the creation of new innovations - also referred to as crowdsourcing.



The topic of innovation is multi-dimensional, which no firm in the globe can afford to ignore today. Being innovative is necessary to stay competitive in the business. The new age of innovation has a lot to do with making the customer an integral part of the innovation system by engaging and involving them with the product or service that the firm is working on.

This is all the more true with consumer-targeted social networking sites like Facebook, where the users drive how the product should look. The customer-centric innovation started off with creating and opening up a software development kit (SDK) for anyone to create and host their applications.

Want to get a real experience with what we are talking about? Just login to your Facebook or Orkut profile and click on the "applications" link. You will see an array of cool stuff in the form of quizzes, music, games, etc. Who do you think has developed them? Do you think Facebook or Orkut has enough employees to develop thousands of these applications? Definitely not!

It is done by enthusiastic folks around the globe with decent web programming knowledge. They downloaded the SDK, developed the app and hosted it all for free. The buck doesn't stop there. After it gets uploaded, the importance of these applications is decided by other users. As more folks add a particular application to their profile, its rating goes up. If the application is not interesting enough for the community, it gets automatically pushed down the stack. From the user's perspective, they can choose and install applications of interest to them, thereby 'personalizing' their profile. This is the real power of crowdsourcing - consumers as creators.

According to Wikipedia, crowdsourcing is a neologism for the act of taking a task traditionally performed by an employee or contractor, and outsourcing it to an undefined, generally large group of people or community in the form of an open call. In the context of social networking, the crowdsourcing goes beyond outsourcing, where users become voluntary creators to benefit of the community.

By democratizing their SDK, firms like Facebook benefit greatly by harnessing the innovative ability of anybody in the world. This breadth of innovation is impossible to groom and sustain within the confines of the firm's employees. Also, the cost of making such innovation happen inside the organization is extremely high compared to crowdsourcing.

On a larger scale, the idea of crowdsourcing has been harnessed by Apple (iPhone) and Google (Android) - these firms designed a monetization model allowing developers to host their applications and quote a price. When users download the developer's application a portion of payment goes to the developer.

In his recent work on 'New age of Innovation', renowned management thinker C.K.Prahalad calls this phenomenon as 'N = 1 R = G'. In order to provide one unique user experience (N = 1) firms need to leverage resources (R) globally (G). It is mainly because every consumer has his unique preferences when using a product, which cannot be satisfied by the firm hiring more people. This new school of thought is much different from the previous generation of technology products where every feature was developed by the firm in a closed development environment. In this new age, the role of the firm is to create a platform and leave it open for consumers to create the applications they want.

So, next time you are set out to innovate something, ask yourself: 'Am I involving my customers in the process?'



Jayakumar Balasubramanian is an engineer by profession. This article originally appeared on MyBangalore.

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Wednesday, July 22, 2009

Innovation Collaboration

How Leading Firms Use Open Innovation

Many CEOs see collaboration as key to their success with innovation. They know they cannot achieve their innovation targets using internal resources alone. So they look outside for other organisations to partner with. A good example is Mercedes and Swatch who collaborated to produce the Smart car. When Mercedes wanted to produce an innovative town car they did not choose another automobile manufacturer - they partnered with a fashion watch maker. Each brought dissimilar skills and experiences to the team.

Costa Coffee is a chain of coffee shops which is in fierce competition with Starbucks and Cafe Nero in the UK coffee bar market. It has had considerable success by collaborating. Costa develops concessions with key partners. Current concession partners include coffee stores in Abbey National banks, W. H. Smiths and Ottakars book stores and Homebase DIY stores. The concession stores are managed by the Costa team who provide high quality coffee and service experience to businesses who want to provide their customers with that little something extra. Customers in concession stores can relax with a cup of coffee and food offering as they take a break from retail therapy, consider that purchase or await an appointment.

The next step beyond collaboration is open innovation. This is something that Proctor and Gamble, IBM and Kimberly-Clark have focussed on as a way of driving innovation. Open innovation replaces the vertical integration of innovation processes within one company with a network of collaborators working on innovation projects. Using outsiders can speed up processes, reduce costs, introduce more innovative ideas and reduce time to market.

Kimberly-Clark reduced the time is takes to bring out new products by 30% through open innovation. It launched Sunsignals in just six months by collaborating with a smaller company, SunHealth Solutions. Sunsignals is a self-adhesive sensor that changes colour when the wearer is in danger of burning in the sun.

Proctor and Gamble aims to source 50% of its innovations from outside using open innovation. Early results include new products such as Mr. Clean Magic Eraser and Pringles Prints. In 2005 Kimberly-Clark partnered with more than 30 companies including joint-development, joint ventures, co-distribution, and licensing deals.

The leading companies are pointing the way forward - collaboration and open innovation.

Here are some key steps for success in open innovation:
  1. Each party should define what it wants to get out of the relationship.

  2. Who owns the intellectual property in the partnership must be clear.

  3. Each side should allocate a senior person with overall responsibility for the success of the partnership.

  4. Key obligations, expectations and milestones should be established early.

  5. Honesty and trust is built on clear communication - especially when objectives look likely to be missed.

  6. Get a good legal contract.



Paul Sloane writes, speaks and leads workshops on creativity, innovation and leadership. He is the author of The Innovative Leader published by Kogan-Page.

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Innovate Your Way out of a Recession

How on earth can companies compete in a global economy where staff costs in India are a tenth of those in the West and where Chinese companies are now looking to outsource their operations to cut costs further? We can not continuously improve our way out of the current challenges, rather we must fundamentally change what we do and how we do it - in short we must innovate.

Some people think innovation is the generation of new ideas - but we would refer to this as creativity. Creativity is part of innovation but is not a substitute for it! Being creative and coming up with new ideas is all well and good but if no one puts them into practice then they are worth nothing to a business. For us innovation is the "commercial exploitation of ideas." It needs to be a planned and proactive process.

Innovation is also seen as being synonymous with the development of new products. Whilst this is true to a degree it is only one part of what constitutes innovation. In fact many businessmen and women are put off by the term innovation because they do not fully understand what it means.



There are five generic types of innovation as represented in this Product-Market matrix:

  1. Process Innovation - Improving how you do what you currently do. The emphasis here is on making the process more effective and efficient rather than changing the end product or service. The aim could be to improve reliability, reduce costs, improve timing etc.

  2. New Product /Service Development - The creation of modified or new products and services to meet a market need. This can be done through re-engineering existing products, licensing existing products, creating differing versions of present products, running incubator generation schemes etc.

  3. Market Development - Breaking into extended markets or segmenting an existing market in a new way can often give insights previously overlooked. Market innovation could be as radical as moving into a new geographical market like opening a store in Japan or sub-segmenting your existing market by different age groups.

  4. New Business Development - As you become more radical, the extent of innovation will increase, and it will become more and more likely that you will need to build or bring in new capabilities. New business may result from taking modified products or technology into completely new markets, or offering new products to extended markets.

  5. Strategic Change (Business Innovation) - Possibly the riskiest approach to innovation - that of moving the business into a different, unrelated market to capitalise on a new product idea or technology. A strategic change might require a new business model, leadership, merger, acquisition or new branding.

Now is the time for businesses to embrace Innovation Management as a core business process. Link innovation to your business goals and overcome the barriers to innovation, and you stand a very good chance of not only surviving the recession but becoming stronger in the process.


Also by Andy Bruce - The Golden Rules of Innovation



Andy Bruce is widely acclaimed as an authority in 'Innovation Management', the author of "Fast Track to Success - Innovation", and the Director of two specialist innovation companies: SofTools and Project Leaders International.

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Tuesday, July 21, 2009

The Leadership Rabbit Hole

Recently, I had the dubious honor to work with a senior executive who just doesn't get it.

Rodney was V.P. of Marketing for a leading manufacturer of networking technology. (Or so we'll say - substitute the leader, politician, or other important person of your choice.) As such, it is Rodney's job to create demand for his company's products. And yet after months of effort, demand had actually decreased, Rodney's team became alienated, and the company's performance suffered as a result of his work.

Rodney was always quick to point out that the economy was sluggish and therefore the problem wasn't his marketing but simply that people weren't going to respond to anything. Also, said Rodney, the Internet team was slow to respond to his needs, holding up his online marketing initiatives. Furthermore, he had made requests of his President for approval on programs but they were denied, so really the marketing woes were the President's fault. Rodney's list of reasons why performance was lacking, as you can tell, went on and on and included everything around him except the common denominator: Rodney.

Down the Leadership Rabbit Hole

The leadership rabbit hole is where would-be leaders go when they've "checked out" and stopped leading. Their reality is distorted and the hallmark is self-deception. More to the point, you can tell if your colleague, friend, or loved one is down the rabbit hole if they go to great lengths to make it clear that the cause of all the trouble in their life is somewhere "out there," outside the rabbit hole, well outside of their control and certainly not their fault. None of the issues at hand are the fault of the individual, all solutions worth trying have been tried, and you clearly don't understand the roadblocks - no, dare I say persecution - they face.

That is the leadership rabbit hole. That mentality kills entire businesses, friendships, and relationships every day.

If Not You, Then Who

The difference between true leaders at all ranks, good employees, and total losers is simple. True leaders at any rank of any company know that only they are responsible for the success required and therefore they must cause success. Good employees diligently deliver results, yet mistakenly believe that only a few need lead and that someone else is ultimately responsible. Total losers consistently think someone or something else is responsible, they think leadership is based in titles, and they fail to deliver results, the thing that counts.

I'm going to say it without reservation: Primary responsibility for our success as leaders rests with us and us alone, whether we are the owner, manager, or dedicated employee.

Not the economy. Not the whim and will of clients. Not whatever tax burden, law, or policy is being imposed by local or state legislatures. Not anything but what we personally accomplish toward success. These things and more may be factors, yes, but only factors and nothing more and to claim otherwise is an exercise in self-deception. The leadership rabbit hole.

Self-deception is a question of focus. Focus is shifted from a no-holds-barred dedication toward delivering on things that are truly factors critical to the end goals of the business (e.g. - revenue, profit, customer inquiries, sales, product quality ratings, etc.) to complaints about things that sound critical but really probably aren't (e.g. - systems delays, taxes, paperwork, etc.). To be sure, it is critical to plan for and solve roadblocks. But when they become the focus and the consistent refrain in defense of lack of performance when a more appropriate response would be no defense at all but rather a concise, well-formed plan for delivering results, that is proof positive we've entered the leadership rabbit hole.

In my experience, we most often enter the leadership rabbit hole as self defense when we're out of ideas and don't know how to accomplish the necessary. "I've tried everything I can think of and nothing worked. It must be everyone else's fault." Here's a fresh idea: ask for help.

If Not Now, Then When

It is extraordinarily popular right now to say that nothing can be done about business performance because of the economy. We have to wait. We're helpless. Sigh.

Hogwash.

To be sure, there are many businesses going under. But did you know there are also businesses doing great? In literally every sector and in every market, there is a #1 performer beating every one of their competitors.

And that is my point: somebody has to be successful. By giving into the self-deception and claiming that there's nothing we can do, we're not only hiding the reality that we don't know what to do, but also we're conceding the market to our competition. It makes perfect sense that some business in our sector will succeed and will be the best, even right now. But by adopting a defeatist attitude, we're in effect saying, "I'm not smart enough to make my business be the best."

I don't know why anyone would ever take that attitude, give up, throw in the towel, and declare the competition bigger, taller, stronger and smarter. If somebody has to succeed and become the best performer in your sector, even right now, why not do what it takes to make that somebody be you?

Out of the Rabbit Hole

I noted above that often we enter the rabbit hole because we don't know what else to do. Important keys to breaking out, then, include providing coaching toward professional skills development, visioning, and strategic and tactical planning. In this way, we give fresh tools, new ideas, and most importantly, new focus and direction away from blame and toward potential results.

Results must be delivered upon. So it is critical to provide accountability to facilitate achievement of the new vision and plan. A simple system of controls is critical to check for performance and provide corrective action.

Not surprisingly, a key factor is that this help and accountability must be accepted. If not, or if the desired improvements do not result - as was the case with Rodney - then it becomes critical for the individual to leave the organization whether by their choice or yours. This is especially sensitive if the individual in the rabbit hole is you and you're the top leader: we've identified the problem, and the problem is you. Now what?

Bye Bye, Wonderland

The leadership rabbit hole is no fairy tale and quite often there is no happy ending. While it will probably be very tempting after reading this article to march up to someone and declare, "You're completely down the leadership rabbit hole and don't even know it," that's not helpful. Connecting with and following the advice of a trusted advisor who can cut through the situation to facilitate the needed coaching and accountability, however, can make the critical difference.



Dustin Walling is Principal of Dustin Walling Associates, a Seattle-based management consulting firm providing strategy and operational consulting. For article topics, questions, or comments, Dustin can be reached at http://www.DustinWalling.com.

All material Copyright 2007-2008, Wallingford Specialties, Inc. and Dustin Walling Associates, unless otherwise noted. All Rights Reserved.

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Determining Innovation's Sweet Spot


Now more than ever, companies need great new ideas, great new products and great new businesses.

However, innovators often fail to realize just how big the difference is between them. For example:

  • Satellite radio is a fabulous idea, and Sirius is great product, but what a terrible business.

  • Gillette Fusion isn't a great idea - but is a great product and a great business.

  • In its heyday, Dell computer was a great idea and a great business, but its products weren't that special.

The Holy Grail is ascending the pedestal reserved for the great idea/great product/great business triumvirate. Contemporary triple-players include American Idol and Guitar Hero. We're also excited about Google's Chrome Operating System and eager to see how the monetization of cloud computing plays out.

Understanding commercial realities at the onset of every innovation project is crucial to delivering those great ideas that become great products and great businesses.

It begins by determining where to play.

Innovators must uncover gaps in the current market. And, more importantly, decide whether there is a market in those gaps:
  • If the answer is "no", that is not defeat. Getting to a fast "no" is invaluable for improving innovation's ROI. Which is why determining where to play is a Phase One priority.

  • If the answer is yes, we call that a sweet spot for innovation. And we get to work creating those great ideas that become winners where it counts - in market.

For a lighthearted look at "Innovation's Sweet Spot," please check out this video:





Mark Payne is President and Head of Innovation at Fahrenheit 212 in New York. Fahrenheit 212 delivers bigger ideas, faster to market.

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Monday, July 20, 2009

Radical or Gradual Innovation?

"Radical Innovation" refers to high risk, high uncertainty projects which hold the potential to both influence the marketplace and bring high returns to firms. It's a kind of "promised land" of differentiation, growth and wealth for businesses and nations. Radical innovation is different from gradual innovation, in which small, incremental changes are made to activities in order to create more value with less waste. The focus of this article is how firms can realize radical, or breakthrough, innovation, which is the more difficult type to foster.

A 2007 McKinsey Global Survey revealed that 70 percent of corporate leaders call innovation one of their top three priorities. They believe that breakthrough (or radical) innovation will have the greatest affect on corporate performance. The report shows that these leaders agree - "innovation is the best strategic decision for sustainable competitive advantage." Yet these same leaders report that strategies for igniting innovation in their companies elude them. Too many barriers exist. Why?

One reason is that radical innovation, while prodigious in its rewards, is also prodigal in it's demands on resources. Translated: breakthroughs can payoff big, but the process is costly, and the risks huge. While investment and risk cannot be avoided in the rigorous pursuit of innovation, an understanding of what is known about successful innovation strategies can help organizations:
  1. Trust in the wisdom of the pursuit

  2. Move forward with greater confidence that the steps they are implementing are the right ones to truly foster breakthrough innovation

Another barrier to successful radical innovation initiatives is that the real driver of innovation is culture, and culture is the most difficult layer of the business pyramid to change (Flameholtz & Randle, 2007). When the words "culture" and "innovation" appear together in an article or research study, the discussion will most likely focus on national cultures, emphasizing the belief that nations demonstrating values of individualism, high risk tolerance and power distance are more predisposed to innovation than collectivist cultures that value hierarchy, social harmony and low risk tolerance. New research, however, indicates that corporate culture, not national culture, has the greatest impact on radical innovations.

In January of 2009, Tellis, Prabhu & Chandy released the results of their research into radical innovation across nations. They collected a wide range of data on 759 firms from a cross section of 17 major economies of the world. Their findings are startling. First, in every nation, radical innovation varies a great deal across firms. So, the idea that national culture is the innovation driver appears dubious. What, then, accounts for the difference between firms that innovate radically and those that do not?

No matter what the country, national culture or climate, firms that produce the greatest breakthrough innovations share three attitudes. These attitudes, the study finds, are "the willingness to cannibalize assets, future orientation, and tolerance for risk." How can corporate leaders use this research to drive innovation in their own firms? They must approach it from the highest level of their pyramid: the corporate culture.

How can firm leadership begin to address the cultural changes necessary to spur breakthrough innovation? They can begin by measuring their own firm's cultural practices using the diagnostic tool developed by Tellis, et. al. This is a great way for firms to benchmark their cultural practices against others of the same size or industry. Then, they can begin to manage and maintain an innovation-producing culture.

Next, leaders can shift their focus away from the number of patents they produce (numbers of patents to do not positively correlate to innovativeness, oddly enough) and toward cultural attitudes that drive radical innovation. Are they willing to cannibalize current revenue producing successes or do they slavishly protect them? A successful stream of profits from existing products and services generally leads to protective measures, in which the firm attempts to hold onto that revenue, rather than sacrificing profits for future discoveries. Do they rest on their past successes (or worse, romanticize them), or do they stay ever watchful of what the future may hold, what might make current profit streams obsolete, and focus on how to meet new challenges down the road? Finally, can they embrace risk? Radical innovation cannot flourish in a fearful atmosphere where risk avoidance is rewarded. "Dare to fail" is the mantra of the innovator.

Some other keys to innovation success include:
  1. Make innovation a core part of your leadership agenda. Start every day with a discussion of innovation and corporate culture.

  2. Managers must model behavior that encourages innovation.

  3. Top innovators must not be penalized for failures; this will only discourage the risk-taking needed for the next big discovery.

  4. Leadership teams must make the time to focus on new topics (future orientation).

  5. In larger firms, collaboration between marketing and R & D departments can be essential to successful innovation.

  6. Mentor both high performers in the firm to become future innovators, and mentor those who may not share in innovation pursuits but who could become innovation "antichampions" if not taught to value innovation, and tolerate the risk inherent in its development.

  7. Accept failures an inevitable.

  8. Try to balance your leadership team with people who are abstract thinkers as well as pragmatists. This mix can help move innovations forward with measurable goals.

Finally, team member selection is of utmost importance. Radical innovation teams need folks who are comfortable working on problems for which paths to solutions are unknown. Such people possess high levels of what's called "associative fluency." Associative fluency refers to a person's ability to make connections across a wide range of domains. It allows them to imagine many solutions to problems, and these people are less like to get stuck "narrowing," or finding solutions only within their domain of expertise. They are multi-dimensional people. So, instead of looking for domain experts for your radical innovation team, look for a mix of people with broad experiences and the ability to see problems from many angles.

Many firms want to create structured, repeatable processes for radical innovation. Instead, the research shows that building cultures and infrastructures that support innovation yield greater returns. In "The Human Side of Radical Innovation" (O'Connor & McDermott, 2004), the authors define radical innovation maturity as "the degree to which the organization has systematically implemented processes for initiating, supporting, and rewarding radical innovation activities." This is a cultural shift, and it's not easy. But it may be the key to the kingdom of the future.

References:
Flameholtz, E.G., Randle, Y. (2007). Growing Pains. John Wiley & Sons, Inc., San Francisco, CA.
McKinsy Quarterly (2007). How companies approach innovation: A McKinsey global survey. http://www.mckinseyquarterly.com.article_print.aspx?L2&L3+O&ar=2069
O'Connor, G. C., McDermott, C.M. (2004). The human side of radical innovation. Journal of Engineering and Technology Management. 21, 11-30.
Tellis, G.J., Prabhu, J.C., Chandy, R.K. (2009). Radical innovation across nations: The preeminence of corporate culture. Journal of Marketing, 73, 3-23.



Julia Fischer Baumgartner is a founder and principal of art-cm, a consulting firm specializing in helping entrepreneurial stage start-ups move up to the professionally-managed level.

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Building an Innovation Nation

Why do some nations and geographic regions seem to be hotbeds of creative entrepreneurship and economic growth, while others remain innovation laggards? In his book The Wealth and Poverty of Nations, Harvard professor David Landis writes, "If we learn anything from the history of economic development, it is that culture makes almost all the difference." National governments the world over are waking up to this truth as they struggle to improve their countries' global competitiveness and economic prosperity.

They now recognize, as The Economist puts it, that innovation is "the single most important ingredient in any modern economy." But how exactly can a country create the cultural and constitutional conditions for innovation to flourish? In short, how do you build an "innovation nation?"

In my travels around the world, I've been asked this question many times, in places as diametrically opposite as Sweden and Saudi Arabia, or Moscow and Madrid. Some nations and regions, of course, are already blessed with a culture that is predisposed to innovation. What we usually find in these countries is a historical openness to ideas from all around the world, a lot of cultural diversity, a high degree of connection and conversation, a deep-seated belief that one can build a better future for oneself and one's family - and ultimately one's community and country - through education and hard work and by seeking entrepreneurial opportunities, and a tendency to encourage or at least tolerate free thinking and contrarian views.

On the other hand, there are national cultures that seem to find innovation much more difficult. I would argue that these tend to be in countries or regions that have an "inward focus", where there is little interest in ideas that come from outside. Generally, they are also cultures that discourage free, independent thinking; where kids are taught at school to "know their place" and not to question anything. What these countries seem to lack is a culture of entrepreneurship, opportunism and innovation at the grass-roots level.

Obviously, culture is something that builds up over a very long time and is incredibly difficult to change. You can't turn just flip a switch and turn a country like Angola - currently occupying last place on INSEAD's Global Innovation Index - into an innovation powerhouse like America (still rather unsurprisingly ranked first). But there are definitely some practical steps governments can take to foster innovation at a national level. John Kao, author of the book Innovation Nation notes that Singapore's transformation over the last four decades, from what he calls "a developing country fishing village" to Asia's poster child of innovation and economic growth, has unquestionably been driven by the city-state's visionary government. Other countries of the world would do well to take a page from Singapore's playbook as they seek to define their own national innovation agendas.

One word of caution, though. There's a tendency in government to think that innovation is almost exclusively synonymous with big science. So if you take any company's ten-year innovation strategy, you invariably read about ambitious plans to build national prowess in certain key technologies. These initiatives are all well and good, but I believe they are somewhat misguided - for two reasons.

First, every industrial economy on earth today is pursuing a dominant position in the same set of brainpower industries - nanotech, biotech, pharmaceuticals and so forth. Some countries have an incredible head start in these fields, which means they are already several technology generations ahead, and they may also be lucky enough to have one or more regional industry clusters right on their doorstep, which gives them easy access to skills and other resources. How can other nations hope to compete when they don't have these kinds of advantages? Not by running the same broad, technological race as everybody else - which I believe will ultimately be a loser's game - but by narrowly focusing on a few niches (technological or otherwise) where the country can lead the world.

Second, the idea that innovation is solely about big science and big R&D budgets is an outdated paradigm. The fact is that many of today's most successful innovations are business model innovations, not technological innovations - they are ways of doing business that break from industry norms by serving unmet or unsatisfied customer groups, providing new or different benefits, or delivering value in an unconventional fashion. These kinds of innovations can potentially come from any entrepreneurial individual in any country on earth.

Take Jim Penman in Adelaide, Australia, who turned a part-time grasscutting job into a global business with 2,600 franchisees. The company, called Jim's Group, does everything from grass cutting and dog walking to car washing, home repairs and pool care - basically all the drudge work you don't want to do, or simply don't have time to do. It's precisely courageous entrepreneurs like Jim Penman who prove that successful innovation can come from the bottom up – and not just top-down through massive government investment programs.

One of the questions governments should therefore be asking is "Are we creating an environment that is truly supportive to grass-roots entrepreneurs? Or does our bureaucracy continually get in the way?" For example, how difficult is it for someone with an interesting business idea to get the funding for a start-up? How difficult is it for the average citizen to register a company? Are we giving potential entrepreneurs financial incentives and making their lives easier, or do they still have to fight their way through miles of red-tape and legislation? And, to my previous point, do we only take innovators seriously if they work in science labs, or are we open to innovators whose big idea is simply an unconventional new business model?



In short, when it comes to bottom-up innovation from entrepreneurs, are we slowing things down or speeding things up?

Let's remember that Silicon Valley grew to be great, not because some politicians in Washington woke up one day and decided that the country's future was hinged on building a scientific industry cluster in California. No, the real fathers of Silicon Valley were tinkerers, risk-takers and opportunists like Hewlett and Packard, Noyce and Moore, Jobs and Wozniak - a legacy that is continued today by heroes like Larry Page and Sergey Brin of Google. The phenomenon we now call Silicon Valley could only happen because the United States is so nurturing - so supportive - to grass-roots entrepreneurs. This is a critical and often overlooked factor in building an innovation nation.



Rowan Gibson is a global business strategist, a bestselling author and an expert on radical innovation.

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Sunday, July 19, 2009

Corporate Innovation - Both Emergent and Managed


Item #1, The Crowd Is Wise (When It's Focused), New York Times:

"Successful projects are typically hybrids of ideas flowing from a decentralized crowd and a hierarchy winnowing and making decisions."

Item #2, Innovation Management an Oxymoron, Paul Golding:

"When I get requests for 'sync up' and 'co-ordination' and 'alignment' and all those other management 'control' phrases, I know that the plot has wandered far from where it needs to be, far away from innovation as a force of creation, dragging it back towards the stronger force, tendency and habit of 'management.' BIG MISTAKE."

In a recent post here, 'What Is Innovation Management?', I wrote about common perceptions about the term "innovation management." The second quote above is yet another example of that. Paul Golding expresses his suspicion for what is meant by innovation management. As he uses the term, I get it. It sounds like ham-handed management failing to understand ideas with intrinsic value, that go against the grain of what its parochial interests are. Taking honest, organic enthusiasm and killing it.

But that's not the case. Having been at Spigit, I've seen these corporate folks firsthand. They're much more dynamic and enlightened than that.

The first quote above, from a New York Times piece by Steve Lohr, represents the types of implementations I'm seeing. Companies want the ideas from their employees. They're looking for the incremental ideas, and the ones that will disrupt an industry (theirs or a new one). But of course they apply their judgment as to which ideas ultimately get taken up.

In the NYT article, Linux is provided as an example. Around the world, developers submit their ideas for the next release of the operating system. It's a great example of harnessing the enthusiasm of innovators. But guess what? Final cuts about what actually makes it into the release are based on what Linus Torvalds and a few others decide. Yup, top-down management of innovation. Why? Torvalds is the steward of Linux.

It's no different inside companies. Managers are the stewards of their businesses. Executives are stewards of the enterprise. What is changing is the general awareness inside companies that innovation does need to be managed better than it historically has been. Innovation management isn't a clumsy effort at turf protection. From that earlier blog post 'What Is Innovation Management?', this is what is emerging today:
  1. Innovation benefits from a range of perspectives

  2. Four of the most damaging words an employee can say: "Aww, forget about it"

  3. Create a culture of constant choices

  4. Looking at innovation as a discipline

  5. Focus employees' innovation priorities

  6. Recognizing innovation as a funnel with valuable leaks

  7. Establishing a common platform for innovation is a revolutionary step forward

  8. Innovation must be more than purely emergent, disorganized and viral

Much of innovation management is the recognition that internal processes and companies' execution focus has limited the pace of innovation. Companies are undertaking serious efforts to improve their employee-driven innovation.

Finally, I like this observation from the New York Times article from the University of California - Berkeley's Henry Chesbrough:

"To succeed, a company must have a culture open to outside ideas and a system for vetting and acting on them."

The first part of the sentence is in line with Paul Golding's post about ideas emerging from throughout an organization, and building employee enthusiasm for innovation. The second part of the sentence - vetting and acting on them - is the stuff of modern innovation management.

The two parts of innovation really can work together.



Hutch Carpenter is the Director of Marketing at Spigit. Spigit integrates social collaboration tools into a SaaS enterprise idea management platform used by global Fortune 2000 firms to drive innovation.

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Crisis or Opportunity?


No one in their right mind would suggest that an economic collapse was just what we needed, but sometimes, tough times do throw up opportunities we don't hear when the bulls are roaring. I remember back in the 1970s, New York was a very different city to the one we know now. It had a gritty edge and the sense that anything could happen if you stepped beyond the lights. As the economy of the city collapsed and bankruptcy loomed, businesses folded or moved on to more congenial locations, leaving behind vast tracts of abandoned buildings and empty store fronts. One by one they were reoccupied, and very often by artists.

Downtown, the Bowery and SoHo exploded in a buzz of creativity. The subway, if you had the nerve to go down there, was a living gallery of graffiti art featuring the poignantly funny chalk drawings of Keith Haring on blacked out notice boards. As each train roared into the station, it was like watching a rainbow rocket past. Above ground, artists like Haring took advantage of empty stores and cheap rents to start their own enterprises. Haring called his the Pop Shop and it gave me the same charge of energy and enthusiasm I had seen and lived with in 1960s London.

I am certain we will see this same spirit blossom in the present crisis. One person's empty space is someone else's chance of a lifetime. This is certainly happening in London, a city that has been savagely hit by the current downturn. A number of artists have grabbed at empty shop fronts to create temporary exhibitions. It's the pop-up store concept in a different guise - opinionated, focused, passionate, committed. It's also an opportunity for local Councils to return some space to creative people to use as studios, sound recording suites, and practice rooms. Good times have the unfortunate effect of squeezing these essential creative resources out of the centre of cities. Let's welcome them back. Our ability to see opportunity rather than threat, and work to our strengths rather than succumb to our weaknesses is the way to get through these tough times. Best of all, it will inspire into the optimism we need to sustain us on the other side that we call the future.

Photo credit: Keith Haring's Pop Shop, New York, circa 1986. Photograph by Charles Golfi Michels.


Kevin RobertsKevin Roberts is the CEO worldwide of The Lovemarks Company, Saatchi & Saatchi. For more information on Kevin, please go to www.saatchikevin.com. To see this blog at its original source, please go to www.krconnect.blogspot.com.

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Saturday, July 18, 2009

Innovation or Extinction?

Adapting your small business or nonprofit during the recession may be difficult - even painful - but it must be done or you risk joining the dinosaur in extinction.

At this point, you've most likely gotten past being frozen by the depth and breadth of the recession. You've cut your budgets and staff to the bone and are lean and mean. If you weren't aggressive about your business before, you are now. You have been in survival mode and congratulations...you made it.

Now it's time to move forward and see the possibilities. You need to start innovating new and improved products and services, because they take time to develop. If you don't do it now, you won't be ready when the downturn turns up again.

I know what you're thinking, "I just don't have the energy," or "I'm busy just trying to stay alive," but you've got to get some gumption and get moving.

Trust me, your competition isn't standing still. Dinosaurs were not smart enough to adapt and plan ahead. But you are.

How are you preparing for the New Age, when the sun comes out, the ice caps thaw and customers, or donors in the case of nonprofits, renew their spending?



Geri Stengel is President of Stengel Solutions, a strategic planning and marketing firm that advises and develops social impact organizations. She teaches Entrepreneurship and Social Enterprise at The New School in New York City.

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Innovation Multiplication

I came across an interesting video with economist Alex Tabarrok talking about the incredible rate of progress in idea creation in the last 50 years and the prognosis for the next 100 years. His main premise?

"One Idea, One World, One Market"


Check out the video:




The video does a great job of visualizing part of the reason that the rate of technological advance is increasing - there are more people working to create ideas and solutions than ever before. Despite the incredible growth in idea creation over the last 50 years, Alex Tabarrok talks a lot about the need to increase the number of idea creators. Currently, less than 1/10 of 1% of the world's population are scientists and engineers (1 in 1,000).

If you think about the world's population as one interconnected cloud computer, and follow that analogy through - billions of our processors are offline. If the rest of the world were as wealthy as the United States, there would be five times as many scientists and engineers.

The United States may be losing its idea leadership, but that is a great thing because it means that the number of idea creators is increasing.

For example, in the ten years from 1996-2006, the number of university students in China increased from 1 million to 5 million. Dr. Tabarrok didn't present the data, but I imagine there was probably a similar increase in India during the same time period.

"We all benefit when other countries get rich"
  • greater demand for ideas

  • increased supply of new ideas

Who will be the idea leader over the next 50 years?



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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Friday, July 17, 2009

Are You Innovating for the Past or the Future?

I had the opportunity to meet and chat with local ethnographic researcher Cynthia DuVal about the role of ethnographic research in the innovation process, and she shared an insight that I thought I would share with the rest of you.

She mentioned that it is important for a good ethnographer or researcher to consider the timeline of the development process when extracting insights. Why is this important?

Well, if you've got a 12-18 month product or service development process to go from insight to in-market, then you should be looking not to identify the insights that are most relevant today, BUT the insights that will be most relevant 12-18 months from now. If you can go from insight to in-market faster than that, that's fantastic, but the point still holds.

If your research team takes all of the data they've gathered and extracts insights for today, then you are innovating for the past, and if they develop insights too far along the time continuum then you are innovating for the future. You can't really innovate for the past (your offering won't be innovative and will be beaten easily by competitors). If you innovate for the future, then adoption will be slow until customers become ready. The trick is to task your insights team to provide guidance for the future present.



The ideal of course is to design a product based on customer insights appropriate to the time of the product launch to maximize the useful life of the customer insights.

The product or service are an expression of the customer insights, and it is the useful life of the insights that we are concerned with, not the useful life of the product or service (a post-purchase concept). When the insights reach their sell by date, sales will begin to tail off, and you better have another product or service ready to replace this one (based on fresh insights).

Now, extracting accurate customer insights for the present is difficult enough. Doing it for the future present is even harder. But, if your team starts out with that as its charter, they will likely rise to the challenge, for the most part.

Because the team will likely only get the insights mostly right, it is important that your go-to-market processes include a great deal of modularity and flexibility. In the same way that product development processes have to design for certain components that are 'likely' to be available, but also have a backup design available that substitutes already released components--should the cutting edge components not be ready in time.

To innovate for the future present, you must maintain the flexibility to tweak branding and messaging (and even the product or service itself) should some of the forecasted customer insights prove to be inaccurate and require updates. It is also a good idea to evaluate, as you go, whether or not a fast follower version (e.g. iPhone OS v3.1) of the product, service, and/or branding or messaging will need to be prepared to address last minute customer insight discoveries that can't be incorporated into the product or service or branding/messaging at launch.

So, will your team have the flexibility necessary to innovate for the future present, or will you find your team innovating for the past or the future?



Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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The Golden Rules of Innovation

Like any other core business process there are some 'rules' of innovation management which will maximise the probability of success. These come under what we call "The 6 Ps":

PLANNING - Innovation must be linked to strategy
  • Successful leaders link core business processes to their strategic goals and annual business planning targets, and innovation is no exception. Use a product-market matrix to clarify the extent and direction of your innovation. Without a strategic direction you run the risk of coming up with innovations that run counter to your businesses best interests!

PIPELINE - Maximise your sources of ideas
  • Once you have linked innovation to strategy you need to generate ideas for performance improvement - but where do your best ideas come from? Ideas come from any part of your organisation; from Open Innovation to internal brainstorming activities. Whatever the source of the idea, you need an effective process to capture, screen, prioritise and resource your ideas.

PROCESS - Ideas to evaluation to execution
  • Once exciting new ideas have been generated, there is nothing more frustrating than seeing them 'fall through the cracks' due to poor implementation. A rigorous approach based on good principles of project and management is required; schedule, sequence of activities and stakeholder management and ROI calculation are all key, as is Risk Management.

PEOPLE - Leaders and Champions
  • The most important factor in creating an innovative culture is having leaders with ability and commitment to succeed. Managers must understand what innovation is, how to manage it and how to motivate. It must go further than the Board - every department or team should have an Innovation Champion. This role should be seen as a career enhancing opportunity and rewarded accordingly. Pick your best people.

PLATFORM - Technology as the accelerator
  • IT systems are not the starting point for implementing an innovation framework, but they are critical enablers. Without an effective web-based innovation tracking system you cannot manage the ideas pipeline and people properly. Look for a solution that manages the overall innovation process from ideas to implementation, and provides key decision makers with the level of visibility and control they need.

PERFORMANCE - Measure, manage, improve
  • Innovation is a business process, like any other. As such it has to be managed. Create a structure that monitors the effectiveness of your innovation process. From monthly or weekly meetings through to team rewards, put in a process. Performance management is the oil that makes Innovation Management happen, so take time to set the right Innovation Key Performance Indicators (KPIs).

Now is the time for western businesses to embrace Innovation Management as a core business process. Link innovation to your business goals, follow the golden rules and overcome the barriers to innovation, and you stand a very good chance of not only surviving the recession but becoming stronger in the process.


Also by Andy Bruce - Innovating Your Way out of a Recession



Andy Bruce is widely acclaimed as an authority in 'Innovation Management', the author of "Fast Track to Success - Innovation", and the Director of two specialist innovation companies: SofTools and Project Leaders International.

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Thursday, July 16, 2009

Do Rewards Kill Innovation and Creativity?

I am constantly asked how to best structure a financial reward system in an effort to motivate people to contribute ideas and improvements. My answer: Just say no.

Combined research from the Employee Involvement Association and Japan Human Relations Association reveals that the average number of ideas submitted per employee annually is 100 times greater in Japanese companies than in U.S. companies. Why? For one thing, we reward the wrong thing in the wrong way. The average reward in Japanese companies is 100 times less than the average U.S. reward of nearly $500. We have it backwards!

In a nutshell: payment for ideas can defeat the purpose.

The situation brings to mind one of my favorite parables:

An old woman lived alone on a street where boys played noisily every afternoon. One day, the din became too much, and she called the boys into her house. She told them she liked to listen to them play, but her hearing was failing and she could no longer hear their games. She asked them to come around each day and play noisily in front of her house. If they did, she would give them each a quarter. The youngsters raced back the following day, and they made a tremendous racket playing happily in front of the house. The old woman paid and asked them to return the next day. Again they played and made noise, and again she paid them for it. But this time she gave each boy only 20 cents, explaining that she was running out of money. On the following day, they got only 15 cents each. Furthermore, the old woman told them she would have to reduce the fee to a nickel on the fourth day. The boys then became angry and said they would not be back. It was not worth the effort, they said, to play for only a nickel a day.


Sound familiar? The old woman's scheme effectively stole from the boys the very thing they loved most to do, what they were in fact doing for free. The moral of the story is pretty clear. If we're not careful, we can replace a natural motivation with a synthetic one. We can rob creative power from people by attaching a financial reward to ideas.

The story repeats itself all the time. Companies treat employees like a rat in a maze after cheese, by paying for approved ideas and accepted suggestions. They then wonder why they get such low participation. They give no thought to the notion that in order to get a good idea, you need a lot of ideas.

Teachers at my daughter's school are notorious for the practice, and I take them to task regularly. They want students to read more books, so they reward the completion of books. Maybe with a homework exemption. Or extra credit. Or even vouchers to the local Taco Bell. So the quick and easy books get read. The superficial books get read. Even the good readers, the ones who love to read, get swept up in the program. They stop reading the classics, turning to the quick reads to score points. Then the program is discontinued, and everyone stops reading. Even the best readers lose their love of words. And that's a true shame.

Is there a solution? I think so: mandatory kaizen, aka continuous improvement. Yep, good old Yankee born and bred incremental innovation, circa World War II, courtesy of Training Within Industry under the auspices of Roosevelt's Emergency Services. Make it part of the daily work. Make it the daily work. Kaizen aims to draw out the natural curiosity and creativity within people and guide it toward adding value for customers.

Kaizen does not attempt to light a fire under people. It lights the fire within them.

Related Article: Importance of Recognition to Innovation Success



Matthew E. May is the author of "IN PURSUIT OF ELEGANCE: Why the Best Ideas Have Something Missing." He is constantly searching for creative ideas and innovative solutions that are 'elegant' - a unique and elusive combination of unusual simplicity and surprising power.

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Designing a Sustainable Paris


In the race to create a sustainable world, designers will be key players. I've always been a big design fan and I salute the new sense of purpose now apparent in every aspect of this industry. It's becoming more experimental, more challenging, more ethical, and more exciting without losing its core functions - to stimulate ideas, change behavior, and offer help and hope.

Sustainability brings a whole new set of issues to the design table and a grandiose challenge was recently issued by French President Nicolas Sarkozy. In a blaze of publicity, Sarkozy invited 10 architects to project 20 years into the future and come up with some ideas for the world's most sustainable metropolis.

The Italians, Bernardo Secchi and Paola Vigano, came up with an extraordinary idea that upturns urban conventions. Instead of starting with hard infrastructure (roads, subways, walkways), they started with the existing waterways of Paris. The Seine is an icon of Paris but there is a less well-known network of canals, rivers, and waterways. There are already efforts underway to renovate this 81 mile network, but Secchi and Vigano had even grander designs on it shaped by a fantastic metaphor: the sponge.

Sponges are living creatures that shift and change with conditions and survive on a constant flow of water through their bodies. What a beautiful idea. A city that flows, grows, and responds. A city that is more inclusive. A city that attracts ideas found in the natural world. So often designs founded on compelling metaphors are the ones to capture the public imagination.

"Renovate the canal system" or transform Paris into a sponge. No contest. Projects to improve sustainability, or based on sustainable principles, often fail the inspiration test. That's one reason why at Saatchi & Saatchi we have bonded with Blue as a motivating spirit. As Japanese designer, Fumi Masuda has pointed out, the job ahead is not to "sustain society as it is, but change society for sustainability".

That means inspiring people. The concepts of the 10 architects will be publicly displayed, debated, tested, and challenged in true French style. Paris to the Channel as a single city, Paris as archipelego, Paris as an eight-petal flower, a Paris of urban fields, Paris as sponge.


Photo credit: St. Martin Canal, Paris, by Jeff Polaski. Sourced from Photo.net


Kevin RobertsKevin Roberts is the CEO worldwide of The Lovemarks Company, Saatchi & Saatchi. For more information on Kevin, please go to www.saatchikevin.com. To see this blog at its original source, please go to www.krconnect.blogspot.com.

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Wednesday, July 15, 2009

Win a Ticket to Business Innovation Factory (BIF-5)

Would you like to go to the Business Innovation Factory (BIF-5) conference October 7-8, 2009 in Providence, RI, but can't afford the $1,200 ticket price?

I have a ticket to the Business Innovation Factory conference (a $1,200 value) that I can't use because of a scheduling conflict, and so I am offering this ticket as the grand prize to an innovation contest here on Blogging Innovation. The event sold out last year and despite the economy, the limited number of spots this year will go quickly. If you're unfamiliar with this excellent event, here is a video of Tony Hsieh, CEO of Zappos.com (@zappos) from last year's conference (BIF-4):




Here is how you enter the contest:

"Write an interesting blog entry (1,000 words or less) that tells the story of a barrier to innovation and how it was overcome either by your company or by another company (citing sources if this isn't your personal experience) and submit it using our contact us page."


Grand Prize (1): One ticket to the Business Innovation Factory (BIF-5) conference (NOTE: Travel expenses are NOT included and are the responsibility of the winner)

Finalists (3): All three finalists (including the Grand Prize Winner) will have their articles published on Blogging Innovation


The logistics of the contest will be:
  1. July 29, 2009 - Open submissions until 23:59 GMT

  2. July 30, 2009 - Announcement and publishing of the three finalists' articles - Voting begins by Twitter @reply to @innovate or by blog comments (no anonymous votes will count)

  3. July 31, 2009 - Voting by Twitter @reply to @innovate or by blog comments concludes at 23:59

  4. August 1, 2009 - Grand Prize winner announced


For those who just want to go to the conference - as a special bonus for my loyal readers I've negotiated a special $50 discount when you enter "BK110" in the payment code field on the payment options page during registration - this will get you in for $1,150. Groups of five or more can get extra discounts.

New storytellers are added each week, but so far they include:
  • Don Tapscott, "Wikinomics"

  • Jeff Jarvis, "What Would Google Do?", buzzmachine.com

  • Bill Buxton, Microsoft Research, "Sketching User Experiences"

  • Grant Harrison, VP of Consumer Innovation, Humana

  • John Maeda, President, Rhode Island School of Design

  • Jonah Lehrer, "How We Decide"

  • Keith Wilmot, Global Director Insights, Ideas & Creativity, Coca Cola

I look forward to receiving everyone's submissions and awarding one lucky winner a ticket to Business Innovation Factory (BIF-5)!

Good luck!



If you'd like to explore some of these issues and discuss them further, please join our Continuous Innovation group on LinkedIn.



Braden Kelley is the founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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Keeping Innovation Ideas Flowing

It happened a few months ago, when I was meeting with some people from one of the world's leading consumer goods manufacturers. This is a company where you would expect innovation to have been honed down to a fine art because it has launched a slew of successful innovations over the course of its long, proud history.

But these executives candidly admitted they had a problem. They had started an initiative to solicit ideas from across their organisation. It started well in the first year, slowed down in the second and was almost at a standstill by the third. Like the parents of a delinquent child, they asked "Where did we go wrong?" and it didn't take me long to find the answer.

It's quite typical these days for companies to set up an online suggestion box and ask their employees - perhaps also their customers - to send in ideas. The reason these initiatives tend to start with a bang and then dwindle down to nothing is that most people already have one or two ideas in their pockets.

They may even have been kicking them around in their heads for some time. So the minute somebody asks for suggestions and offers an incentive for submitting them, all those would-be innovators come out and post their ideas.

But soon after this low hanging fruit has been picked and processed, a company usually finds that less and less suggestions are coming in despite the fact that the same incentives are being offered and management continues to beat the innovation drum with the same intensity.

Here's why: people find it far easier to submit ideas they already have than to go through the intellectual work of coming up with new ones.

Don't get me wrong. I'm not against electronic suggestion boxes or idea management software per se. Indeed, one of my key messages is that companies should involve as many minds as possible - inside and outside the organisation - in their innovation efforts. So, essentially, these platforms are a good thing.

The reason they so often fail is that they are way too passive. They simply sit there waiting for lightning to strike. They don't do very much to create the conditions that produce the lightning in the first place.

They don't trigger innovation by inspiring people with new insights and perspectives. They don't train people how to stretch their thinking along new lines. They don't create a thick matrix of connection and conversation between many different voices. And they don't guide would-be innovators on how to turn a wild idea into a concrete business plan.

If you cling to the notion that innovation is something enigmatic and ethereal and that an electronic suggestion box will somehow just pluck ideas out of the ether like a radio antenna, your innovation efforts will not get very far. Instead, you need to build your idea collection system on a deep understanding about how the innovation process actually works.

To put it simply: big ideas are born from breakthrough insights. Go back and look at any case of successful business innovation over the last few decades and you will invariably find that it was about challenging conventional wisdom about how things are done or recognising the power of some nascent trend to upend an industry or leveraging some competence or asset in an exciting new way or discovering some deep, unarticulated customer need.

These kinds of insights are the raw material out of which radical innovations are built. So it follows that, if we want people to continually come up with powerful new ideas and growth opportunities, we have to continually inspire them with a constant stream of fresh, strategic insights.

Indeed, we have to teach them to discover such insights themselves by giving them the right thinking tools and training them to use them. We have to show people how to use eye opening insights to generate eye popping innovations.

One company that has done this highly successfully is Whirlpool, the global appliance manufacturer. Instead of just setting up a passive electronic suggestion box, the company established a sophisticated IT infrastructure several years ago called 'Innovation E-Space' which is open to anyone at Whirlpool who has intranet access.

With just a few clicks, Whirlpool employees can look for inspiration by perusing insights captured on the system, they can use these insights to spark new thinking, they can submit their own ideas and insights, they can build on existing ideas, they can follow an online tutorial on how to turn ideas into business concepts and they can find innovation coaches and mentors in their region who can help them organise seed funding for their ideas.

Whirlpool also instituted a leader led training process (like GE's Work-Out) aimed at enabling their people to continually apply the system to their own jobs.

Over the last five years, Innovation E-Space has had hundreds of thousands of hits from Whirlpool's employees worldwide and has become indispensable to the way people share ideas, learn together and collaborate on innovation projects in the company.

Rather than starting out with a torrent of ideas and ending up with a trickle, the system has gone from strength to strength and has been instrumental in making innovation a daily reality at Whirlpool. Most importantly, it has also helped the company add billions of dollars in innovation generated revenue to its top line.

As for the organisation I mentioned at the beginning, I told them they would have to do much more than just ask for ideas and then sit back and wait for them to come. In fact, I recommended that they take a good look at Whirlpool. And if your company is facing a similar struggle to maintain the momentum on innovation, you might want to do the same.


Rowan Gibson is a global business strategist, a bestselling author and an expert on radical innovation.

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Tuesday, July 14, 2009

Social Media and Music - Ideal Partners?



Quiet Company - "It's Better To Spend Money Like There's No Tomorrow Than Spend Tonight Like There's No Money"


I recently became aware of TheSixtyOne, an online music community where "artists upload their work for review, but, rather than allow a stuffy suit in a boardroom to decide what's good, thousands of listeners do." Since I canceled my Last.fm account after they handed user data to the RIAA, I've found TheSixtyOne to be the best way to learn about new bands that you otherwise wouldn't hear about.


One band I've gotten into from TheSixtyOne is Quiet Company from Austin, TX. Their music is a kind of wonderful, melodic piano-pop with lyrics that are optimistic without feeling cheesy. With songs like "It's Better To Spend Money Like There's No Tomorrow Than Spend Tonight Like There's No Money" (above), you know they're not taking themselves too seriously.


After playing the track list multiple times, I just HAD to share them with my Twitter stream. The best way to share music on Twitter is Blip.fm. I searched, found the song, and sent this:


3720936014 67cffe3881 How Quiet Company Took Me from Fan to Evangelist


That was the last I thought of it, until this morning. When I opened TweetDeck, I found this reply from @quietcompanytx:


3720140717 ea81aca8a3 How Quiet Company Took Me from Fan to Evangelist


They followed up with another tweet saying I could share that link with anyone I think would like their music, so here you go.


I downloaded the sampler, happy to get free music, and played the three songs about four times over.


Then something funny happened.


I went to the Quiet Company site, and bought & downloaded their newest album, "Everyone You Love Will Be Happy Soon", directly from the band.


What's so funny about that? I almost never buy new music. With the plethora of online music sites - from Last.fm to Pandora, to Blip.fm to TheSixtyOne and more - I can stream just about anything I want. For free.


But because Quiet Company used the tools of the internet - first, to showcase their music; then, to find and reach out to those talking about it - they were able to gain a new fan, turn that fan into an evangelist, and see a return on the time and effort they've spent.


This isn't something that only applies to music. Whether you're a band, a business, or a nonprofit, how can you excite people with your offerings? How can you benefit from listening to online conversations and engaging with those that are talking about your product or service?




Gradon Tripp is the founder of Social Media for Social Change, an organization that uses the tools of online media to raise awareness for nonprofits. He writes about ways organizations -- both non-profit and for-profit -- can benefit from using social media at GradonTripp.com.

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Monday, July 13, 2009

Incorporating Social Media into the Conversation






I came across an interesting Fast Company blog article from Steve Rubel titled "How to Captivate and Hold Attention in the Age of the Stream" that caused me to think about parallels between digital media and physical media. Here is an excerpt:

"Imagine for a moment that you're standing on an overpass high above a busy L.A. freeway like the 405 or the 5. It doesn't really matter which. Pick one.

In a span of a few minutes literally thousands of cars will speed by. Some will be loud. Others quiet. Some will be notable, but most won't.

At the end of the experiment, if I were to ask you to recall ten cars and trucks and what was memorable about them, I guarantee that you would be hard pressed to do so. What's more, none of the cars would have been "repeat impressions." You saw each car only once, and likely not every vehicle on the highway. That's precisely the same challenge that marketers face in the 'age of the stream.'" (article excerpt)


Of course you can't make exact parallels, but it struck me that when people view social media as a distribution channel (which it isn't purely that), the following parallels emerge:


Steve Rubel concludes his article by saying that the solution to the streaming challenge of social media is to be ubiquitous. That of course is easier said than done and I don't feel goes far enough.

In this new digital world, excellent marketing campaigns will require integrated physical and digital planning, strategy, and execution that streams "conversation starters" through multiple physical and digital 'channels' to lead naturally into longer conversations in both corporate and uncontrolled social media outlets, before circling back into new "conversation starters" informed by this customer dialogue.


What do you think?



Braden Kelley is the founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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The Ten Tenets of Transformation



THE POINT: How you think about an innovation challenge determines how well you deliver game-changing ideas. Our 10 Tenets of Transformational Thinking may be practiced by anyone, in any industry, at any scale, any time. Farewell, light bulb myths. Hello, consistent performance.


THE TEN TENETS OF TRANSFORMATION

Transformational thinking is all too often thought of as a once-in-an-eon lightning strike moment. Banish this belief once and forever. In our innovation practice, we've found that with the right orientation, transformational thinking leaves the realm of serendipity and becomes a bona fide discipline, as repeatable and scalable as any other.

Commercializing transformational ambitions of course requires more than just coming up with the ideas. But in this chicken-and-egg game, you'll need those ideas first to get the support and resources you need to make it happen, and get famous for it. To abet that pursuit, here are 10 ways Fahrenheit 212 practices the mental gymnastics we call Transformational Thinking. It's our approach to consistently generating game-changing ideas...

  1. BUILD A HEALTHY DISRESPECT FOR PRESENT REALITY

    • Glory awaits those who successfully overturn the things we most take for granted. Why shouldn't every note of music I own go with me everywhere I go? Why can't alcohol taste as refreshing as water? Get stupid again. It's empowering. If you didn't know you were supposed to run inside when it rains, you'd discover great things.

  2. MOVE THE CAMERA TO ANOTHER PART OF A ROOM

    • Practice the art of changing perspectives on a dime. With every new constituency considered, every new angle tried, your exploitable assets inventory grows exponentially. Look through the eyes of different consumer segments, your retailers, the guy driving your truck, your suppliers in Fujian Province and new things will come into view. If you're designing a car, know that even the bug about to get splattered on the windshield has a unique point of view that may unlock big ideas.

  3. LOOK BACK ON THE PRESENT FROM THE FUTURE

    • Changing the world isn't about inching forward from where we are now, but about defining great destinations, and looking back from them to figure out what must be true to make them happen. If you're in technology, a few years is probably as far as you can credibly look back from; but in FMCG, thinking in five or ten-year leaps is not out of bounds. What could the world look like if today's opportunity were pursued with great velocity?

  4. THINK IN JAZZ

    • Jazz musicians institutionalize the art of listening while playing. Picking up on other players' themes and reinterpreting them, sending a new provocation back to the first player that is then pushed again. Encouraging chain reactions exponentially increases human creativity. Choose jam session players from across your organization, outside your industry, beyond your comfort zone. Such cross-fertilization breeds a bigger, more joyful noise in market. And while some of your colleagues may be tempted to copy your competitors, the transformational approach is to treat it as inspiration to riff on in new directions.

  5. LOOK FOR THE PROBLEM BEHIND THE PROBLEM

    • Ninety percent of the time, there is a much larger issue behind the challenge you're staring at all day. If you first define and solve that bigger one, the other problems will take care of themselves. If the thing that's costing you sleep is that 21-year-old guys don't love your product anymore, maybe your real problem is that you've got a huge, broadly applicable technology stuck in the small business of pleasing fickle 21-year-old guys. Opening that bigger market is the thing that will restore your share and your dreamtime.

  6. SEEK THE ONE-DEGREE CHANGE THAT MAKES A WORLD

  7. OF DIFFERENCE
    • Heating water from F211 to F212 unleashes catalytic power. What happens when you muse on the minute? Oh, let's sell the computer before we make it. Let's sell coffee for five bucks a cup. Little changes spawn multi-billion dollar businesses.

  8. PRACTICE THE ART OF COLLISION

    • The Reese's Peanut Butter Cup is a metaphor for life. What seems completely new is often just an unexpected combination of the familiar but previously disconnected. This is Innovation 101, but too often we forget, and think the one asset we have is the answer, rather than asking what we can bundle it with to transform its value.

  9. POWER YOUR BRAIN WITH LAUGHTER

    • Landmark studies proved decades ago that people solve problems far more effectively when they're told it's no big deal and primed with Three Stooges movies than when they're grimly told to work carefully. There's science behind it. Laughter sends endorphins to our brain's lateral thinking areas. Sure, the world is going to hell in a bucket, but lighten up: you're more likely to land on a transformational idea.

  10. READ UP ON HOWARD GARDNER'S OCTO-THINK

    • One-dimensional ideas are rarely transformational. They're easily replicated in a world where competitive response cycles shrink by the day. Harvard's Dr. Howard Gardner delineated eight ways people take in ideas, including verbally, visually, logically, musically, physically, emotionally, spatially and mathematically. Run like the spider using all eight legs. Your ideas will be a whole lot stickier.

  11. THERE IS NO TENTH TENET

    • Less really is more. The simple idea beats its complicated, overcooked cousin every time.



Mark Payne is President and Head of Innovation at Fahrenheit 212 in New York. Fahrenheit 212 delivers bigger ideas, faster to market.

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Friday, July 10, 2009

Broadcasting the Voice of the Customer

Business Strategy Innovation has published a white paper to its web site on "Broadcasting the Voice of the customer."

Here is an excerpt:

"Before the industrial revolution, most businesses in the United States were sole proprietorships or small family run businesses. In those days, every member of the business was in direct contact with the customers and had the opportunity to passively or actively hear the voice of the customer.

The voice of the customer tells us what about our product or service that customers find valuable, and what they find annoying or useless. By focusing on what customers found valuable and removing or reducing what they found annoying, these small businesses could accumulate financial success and customer loyalty.

In today's interconnected world, we are in the midst of a customer revolution. Today's customer has unparalleled access to pricing and product information to enable a more informed and economic purchasing decision. Today's customer benefits from marketing developments such as mass customization, mass personalization, and micro-segmentation. In addition, they have unrivaled access to communication channels to make their preferences known. But, who is really listening?

We live in a world of corporations and conglomerates, where most of the employee class has no direct access to the voice of the customer. The man or woman stitching up your clothing has no idea whether the stitching method worked well for you, or if you were happy with the product. They only know whether or not they made their daily quota and how much failed Quality Control. If the person stitching your clothing had access to the voice of the customer, would they do their job differently? Would they feel differently about their job?

In many of today's companies, the job of listening to the customer falls to someone in the marketing department, possibly even someone who does nothing but focus on brand and customer research. This person usually works with product management and possibly research and development to inform product revisions and new product development. Often, very few people outside of that core team have access to the voice of the customer. But why restrict customer feedback to a select few?"

Download the complete "Broadcasting the Voice of the Customer" white paper in PDF form.


What do you think?



Braden Kelley is the founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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Thursday, July 09, 2009

The Importance of Play to Innovation

A pioneer in research on play, Dr. Stuart Brown says humor, games, roughhousing, flirtation and fantasy are more than just fun. Plenty of play in childhood makes for happy, smart adults - and keeping it up can make us smarter at any age.





Pascal Wattiaux (whom I met after writing the Gever Tulley article) recommended an article on play from the Brick Journal, Issue 6. The article recounts an adventure in the Middle East with LEGO's Serious Play - a consulting method, pioneered by LEGO, that centers on play. The article highlights four Serious Play consulting companies coming together to work with the 300 incoming graduate students for the King Abdullah University of Science and Technology (KAUST) in Saudi Arabia. Here is an excerpt:

"The community building began with the students placed into teams and, led by Jens Hoffmann of Strategic Play, proceeded with the team members building LEGO models to represent themselves, their ideal teammate and what each individual would contribute to their team during the two day workshop. From there, the teams created a group model, with the team members building and writing about how their community could service society. While the models were challenging to think about, the students all were creative in their models and bonded while building the group model, with groups getting more and more animated in their discussions and building. Building was punctuated by comments and laughs as teams built different models and items. With a common goal, the teams began to bond, regardless of language and culture, and by the end of the day, each table had a shared model, a shared language and shared view of the world."

So not only does play help to create happy, smart adults but it helps to create stronger emotional bonds and collaboration among team members. This second excerpt highlights the learnings from the two-day LEGO Serious Play workshop:

"Afterwards, there was a final session devoted to evaluating the lessons learned. Bashar Al Safadi of Omniegypt was the host of this session, where the teams discussed what they learned from all of their activities. From their discussions, the top points were determined and presented to all of the teams. And through all the differences the students had when they first met, they found they had a lot in common - and they all had learned to communicate and have fun with each other.

After the session ended, many of the students took pictures with their new classmates and now friends, but one team took some of the ping-pong balls they used and signed them as a group, as a keepsake of their first meeting. At Discover KAUST, the students discovered more than a college. They discovered a community."

You may have heard the saying "The family that plays together stays together." Well, there is everything to be said for finding a place for play in the workplace (especially if it increases employee engagement and innovation), but can managers accept that?


What do you think?



Braden Kelley is the founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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The True Nature of Innovation (Perception vs. Reality)

The new reality TV series, "Stars of Science," gives 16 young Arab inventors a chance to design and build their dreams. From a solar-powered generator for tents, to an oxygen-infused juice drink, contestants vie to impress the judges and the audience. The show has captured the attention of many viewers, some of whom are eager to demonstrate that the Arab world can produce innovations as clever and profitable as the rest of the globe.

"Stars of Science" is sponsored by the Qatar Foundation. While it's an honorable undertaking that encourages individual creativity, the one problem with the show is that it promotes only the popular perception of innovation. That is, a singular genius tucked away in a laboratory, experimenting with ways to make his or her inspiration a reality.

Many people equate inspiration, and subsequent inventions, with innovation, but they are not necessarily the same. The electric light bulb, for example, is one of Thomas Edison's best known inventions. But even Edison realized that the light bulb would be of no value unless electricity was available in every home. Thus, the innovation was not the light bulb itself, but the electrical grid later designed to make the light bulb a useful invention for people.

Another example is the wheel - an inspired invention, but one that only lived up to its potential after some innovative thinker attached more than one wheel to a slab and created a cart. Many inspirations lead to inventions. Like the wheel and the light bulb, some inventions catch on. Others, however, never make it past the prototype, and they never reach the level of innovation.

Contrary to the popular perception, innovation is actually the process of uncovering a problem for which there is no solution (or no good solution), and then developing a way to solve the problem. For example, the light bulb, when coupled with a citywide electrical grid, solved the problem of providing light after sunset without the mess and danger of candles. The wheel, when attached to a cart, solved the problem of transporting goods long distances over land. In these cases, the innovative solution was a tangible item, but innovation can also take the form of a process or approach that solves a problem.

For instance, consider the age-old innovation of curing meat to make it last longer, or using spices to make food more palatable. Restaurant service is another innovation, a solution for travelers and others who can't eat at home. Take-out and delivery are innovative approaches to restaurant service that solve the problem of eating at home without having to cook.

In the business world, in addition to solving problems innovation must also provide value to customers. In other words, the innovation must solve a problem that customers care about, and provide a solution for which they are willing to pay. All too often, companies offer new product features or expanded services, that company engineers and marketers think are innovative, but which don't really add value from the customer's point of view. (Think of the software upgrades you may have been required to purchase with a new computer, or the 'new and improved' shoe polish that seems to work just as well as the old kind.) As Scott Berkun points out in "The Myths of Innovation":

  • "Many bright would-be innovators... fail to spend enough time exploring and understanding problems before trying to solve them."

Part of understanding the problem is viewing it from the customer's perspective. In this regard, we need to avoid the typical questions such as:

  • "How can we improve this product/service?"

  • "What innovation can we implement?"

The question to ask is "What is the user (or customer or client) trying to accomplish?" Such a question often leads to gaps that have been overlooked, and provides a perfect opportunity for real innovation.

For instance, when a person shines his shoes, does he care more about having a good shining experience, or about having polished shoes? Focusing on the experience of shoe shining, as the shine manufacturer might do, may lead to various product improvements, such as a quick-drying or non-streaking formula. However, focusing on the end result (polished shoes) might lead to the formula for a spray that can be applied when the shoes are made to provide long-lasting shine. The first is merely an incremental improvement, but the second is an innovation that not only meets the customer's end goal, but also broadens the market for the shoe shine company.

Solving problems and providing value to customers is the crux of innovation in business. But innovation should also lead to growth opportunities. Strategically, this means developing a balanced innovation portfolio that includes different types of innovations: products, services, processes, strategies and business models. A manufacturer, for example, shouldn't focus all its innovation efforts on new products, nor should a government limit its innovations to new services.

An organization's innovation portfolio should also be varied when it comes to the degree of innovation, from incremental to significant to breakthrough projects. Organizations that diversify their innovation portfolio along these lines almost always generate higher return on investment than companies that limit innovation to only one type or degree. In addition, companies that innovate simultaneously in multiple areas reap more rewards than those that innovate in a single area.

Today, innovation is a popular buzzword, but organizations that wish to grow through innovation will only succeed if they pursue real innovation - using a strategically-sound approach, which enables them to solve problems that provide real value to customers. It is an approach that can be learned and assimilated into any organizational structure, with the right guidance and tool set.



Kamal Hassan is President and CEO of Innovation 360 Institute, and is responsible for leading the company's global operations and customer acquisition.

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Guy Kawasaki - The Art of Innovation

I came across a nice cut of Guy Kawasaki's frequently delivered "Art of Innovation" presentation from Cisco Live 2009 that makes it possible to enjoy the key points in eight minutes.





So are you letting the bozos grind you down?


Braden Kelley (@innovate on Twitter)

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Wednesday, July 08, 2009

Is Innovation Dead in Consumer Packaged Goods?

I was having an interesting discussion this morning with a couple of innovation colleagues of mine. One is an entrepreneur with an outsourced "skunk works" business. The other is a creator and inventor who led disruptive innovation efforts at a major office products company. We came to a sad conclusion, at least for us innovation-oriented types.

Innovation is dead in Consumer Packaged Goods (CPG) Corporate America.

Well, maybe dead is too strong a word. Morbidly thin, perhaps. To be sure, there are some notable exceptions. But as we looked around in today's economy, we concluded that in spite of corporate leaders' recognition of the importance of innovation, the focus tends to remain on incremental, "safe" projects. Failure is not tolerated (let alone encouraged), and employees are rewarded equally for changing the color of an existing product or changing the dynamics of the marketplace.

Is this gloomy assessment accurate? If so, what should be done about it? Is this just the result of trying to weather the economic storm, or is this an ongoing trend?

Fortunately, innovators are not going extinct. Their habitat, though, seems to be changing. Would Thomas Edison survive an annual performance appraisal in a typical 21st century CPG company?

Manager: Tom, you know, I'm not seeing a great deal of progress on this "Project Lightbulb." You've failed to make anything we could possibly sell, and the fiscal year ends next week.

Edison: I haven't failed. I've just found 10,000 ways that don't work.

Manager: We're paying you to find ways that do work, not ways that don't. I think it's about time we gave up on this.

Edison: Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time.

Manager: Sorry, Tom, but our stockholders think our greatest weakness lies in not launching this product in time for the Walmart shelf reset. All I see in your lab is a pile of junk.

Edison: To invent, you need a good imagination and a pile of junk.

Manager: No, what you need is to get some revenues out of all this money we're spending on you. Your research is like a black hole! Money goes in, but never comes out. You've spent a fortune, with no sign of a fortune coming back

Edison: Good fortune is what happens when opportunity meets with planning.

Manager: Well, I think you ought to start planning on updating your resume.

Companies that really want to innovate, and not just pay lip service to innovation, need to do a few things:

  1. Encourage good failure

    • As Jeffrey Meshel said in his book One Phone Call Away, "Good judgment comes from experience. Experience comes from bad judgment." Good failure comes from trying to achieve, not quite getting there, and learning something in the process that will lead to future success. When failure is punished, risk acceptance and employee effort are stymied. Find ways to reward "good failures," and provide public recognition for such things, so people know that trying, failing, and getting up to try again is not only acceptable, but encouraged. The Apollo 13 mantra, "Failure is not an option," is a great motivator, but I am certain that the engineers who famously modified the CO2 filter with plastic bags, cardboard, and duct tape had several failures on the way to their eventual solution. Not tolerating failure leads to Homer Simpson management: "You tried your best and failed miserably. The lesson is: never try."

  2. Change accounting practices

    • I know that there are Generally Accepted Accounting Principles established, but at least one of those principles is wrong (at least in the US). Forcing all R&D expenditures to be expensed distorts the value of R&D spending. R&D is like any investment - you spend money now in the hopes of excess future returns. In fact, some project evaluation models are now based on options valuation theory. Many, if not most, R&D expenditures should be capitalized. Studies in countries outside the US have shown the value of this treatment (e.g. The Canadian Academic Accounting Association study). Economic Value Added accounting does this, with the result that investment in innovation is recognized for its true worth, and is encouraged accordingly.

  3. Implement innovative compensation systems

    • Metrics for innovation are always tricky, but this is a problem that firms must tackle if they are to genuinely encourage innovation. The rewards for incremental innovation and breakthrough innovation should not be the same. Measures such as percent of revenue from new products or number of new product launches can be gamed – what constitutes a "new" product? Venture capitalists are rewarded for finding the diamonds in the rough. Innovative employees should be as well. An internal royalty system is one intriguing possibility.

  4. Manage for cash flow rather than short-term profitability

    • Sometimes, the pressure to meet short-term profitability targets cause companies to look for spending to hack away. All too often, this spending comes from what should be seen as investment in the future. Evaluate your present and future cash flow, and keep the company healthy from that perspective, even if it means missing profits now. Maintain sound R&D investment, and the present value of the future rewards will compensate for the current profit shortfall. Warren Buffet avoided the dot com bubble burst by sticking to a long term investment strategy that skillfully avoided the rush to find someone, anyone, in the dot com world to invest in. Short term pressures can lead to suboptimal business decisions. When possible, remember to think long-term.

All of this, of course, is not to say that deadlines are unimportant, spending should be unrestricted, or managers should not drive for achievement. Going back to the Apollo 13 engineers, they had absolute deadlines and minimal resources with extremely serious consequences that could not be ignored. Their success came from combining that urgency with a willingness to do what it took to get the job done. Corporate business practices should also encourage such willingness, and will find greater innovation and financial success by doing so.

So, what are your perspectives on the state of innovation in the CPG world?



Brad Barbera is the founder of KAB Business Research, a consultancy focusing on Innovation Training, Ideation Facilitation and Management, and Business Intelligence.

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Tuesday, July 07, 2009

Improving Innovation Collaboration

I first met Keith Ferrazzi at the incentive2innovate Conference at the United Nations. Keith is the author of the best-selling "Never Eat Alone" and the new bestseller "Who's Got Your Back." When his book tour stopped in Seattle the very next week, I had the opportunity to ask Keith on camera about the impact of relationships on innovation and collaboration. Here is what he had to say:





As many of you know, innovation often comes as a result of triumphing over fear - fear of failure, fear of rejection, etc. By creating effective peer support groups in your organization (especially amongst innovation teams), much of this fear can be replaced with trust. As you can imagine, immense power comes from making this substitution.

"Who's Got Your Back" is a book all about the importance of building an inner circle of deep, trusting relationships that create success and won't let you fail. These kind of peer groups can be built both by individuals for personal and professional development, but can also be consciously built within organizations to increase collaboration and team success.

To improve innovation and collaboration it is important to build peer support teams that can reach out to each other for candid feedback - teams who aren't afraid to challenge each other, in order to help the team succeed. Of course people have to feel that it is safe to challenge each other and learn that challenges come not from an intention to criticize, but from having each others back.

Keith Ferrazzi claims that in order to create effective peer support teams, you need to assemble and teach teams of 3-4 people the four core mind-sets, outlined in the book:

  1. Generosity

    • "This is the base from which all the other behaviors arise. This is the commitment to mutual support that begins with the willingness to show up and creatively share our deepest insights and ideas with the world. It's the promise to help others succeed by whatever means you can muster. Generosity signals the end of isolation by cracking open a door to a trusting emotional environment, what I call a 'safe space' - the kind of environment that's necessary for creating relationships in which the other mind-sets can flourish."

  2. Vulnerability

    • "This means letting your guard down so mutual understanding can occur. Here you cross the threshold into a safe space after intimacy and trust have pushed the door wide open. The relationship engendered by generosity then moves toward a place of fearless friendship where risks are taken and invitations are offered to others."

  3. Candor

    • "This is the freedom to be totally honest with those you confide in. Vulnerability clears the pathways of feedback so that you are able to share your hopes and fears. Candor allows us to begin to constructively interpret, respond to, and grapple with that information."

  4. Accountability

    • "Accountability refers to the action of following through on the promises you make to others. It's about giving and receiving the feet-to-the-fire tough love through which real change is sustained."

Allowing oneself to be vulnerable is incredibly difficult. One of the tools presented to help people achieve vulnerability was 'The Eight Steps to Instant Intimacy':
  1. Create an Authentic Environment Around You

  2. Suspend Your Predjudices

  3. Project the Positive

  4. Share Your Passions

  5. Talk About Your Goals and Dreams

  6. Revisit Your Past

  7. What's Keeping Your Up at Night?

  8. Future Fears

Being successful at candor is also very difficult. Here is a list of things from the book to keep in mind when you're trying to elicit candor:

  1. Find People You Respect

  2. Create the Opportunity

  3. Make It Clear Any Feedback You Get Is a Gift

  4. Acknowledge Your Faults

  5. Tell the Other Person What You Plan to Do with the Advice

  6. Don't Tell Them What You Want to Hear

  7. Ask Specific Questions

  8. Take It or Leave It - but Deliver on Safety

  9. Paying Them Back

There are a lot of good examples in the book and a lot of good information that brings all of these points together. Managers will definitely create increased innovation and collaboration if they can do a good job of engaging and recognizing employees, while also creating innovation teams that collaborate with vulnerability, generosity, candor, and accountability.

Will your innovation teams be able to find their safe place and have each others' back?


What do you think?



Braden Kelley is the founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

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Our Modular Electronics Future




THE POINT: Leading electronics companies can lead a movement to future-proof their businesses by innovating updatable products that encourage customer loyalty, sustainability and pragmatic fun.

Creating Consumer Electronics 2.0

It's easy to blame tighter purse strings for falling electronics sales figures. But it's not just lack of money that's keeping customers away; it's fear of instant obsolescence.

Today's consumer consideration set has fundamentally shifted. We now want long-term value, not just the latest and greatest.

Yesterday we used an electronic device until it broke or a better one superseded it. We disposed of the old with great dispatch. Brands using a Parallel Model of product development kept us enthralled with a constant churn of new shiny objects and updated versions. Durables were recast as disposable. Sales and stocks soared. Best Buy created a whole new business, Geek Squad, to help us keep up. We wanted new toys, but needed Geeks to show us how to use them. We delighted at every new feature. We also started feeling pangs of "buyer's hesitation" as Moore's Law kept shortening product life cycles. Particularly as we started replacing devices that still worked just fine.

Oh, how we loved our first iPod - 5GB of musical magic for $399. But oh, how quickly we tossed our still-working sweetie into a drawer, lured by ever-smaller, higher-capacity, ever-cheaper iPods. As prices fell and capacity increased, however, internal conflict also rose. We could never be sure of our decision to buy or when. Wouldn't something far superior be just around the corner?

Today's economic realities compound these past experiences. The consumer technology industry has inadvertently trained us to delay purchases. Though it drove 15 years of unprecedented growth, this Parallel Model won't hold for the next 15. Lowered components costs will not be enough to spark demand.

What might tempt us to spend? An assurance that we're investing in technology rather than playing silicon hopscotch.

Manufacturers and brands need to move from a focus on this year's model to a focus on a whole new model.

Consumers now demand enduring goods we can easily update ourselves. We welcome a new Series Model age of product development.

Imagine how transformative it would be to have an industrial/retail structure where product parts are swapped out [and recycled], where the upgrade is built in, where the form can completely change to answer new needs or aesthetic desires.


It's not such a new concept, but a return to the long-term pragmatism that skipped a generation. Grandma insisted on products that were built to last; tech-savvy Millennials expect the same. Favored Serial Model brands would reflect their values: respecting resources and sustainability; nurturing networked relationships; promoting self-reliance and utility as the height of style.

Consumers embrace smart series strategies in other sectors. We don't throw away our cars when a new set of tires or a paint job is needed. We put energy-efficient bulbs and new shades on perfectly functional lamps. We buy the latest razor blades for our enduring shaver. Why not make consumer electronics as easy to update?

Switching to series production requires moving from a focus on design to a focus on the well designed. It's a long-term view with manifold benefits.

Series Model: Answers both producer and consumer desires for Value and Profit:

  • Creates a deeper bond between consumers and a brand, provided that the producer commits to improve and evolve the technology.

  • Eliminates the waste of a churn-n-burn model, freeing up investment capital for developing huge, category-creating innovations that radically improve consumers' lives.

  • Generates a can-do dynamic between manufacturer and consumer. Since service people cost more than manufacturing labor, it behooves the manufacturer to make swapping out updating / fixing so easy that the consumer will happily take on the task.

Series Model innovations might include:
  • Swapping out a circuit board like we do memory cards

  • Placing more functionality in parts that can be easily replaced like controllers & remotes

  • Designing for aesthetic/functional switching thru more attachment inputs

  • Creating energy-improving refrigerator cooling unit upgrades that utilize existing casing

  • Making upgrading a 3 mega-pixel camera to an 8 mega-pixel as easy as switching lenses

Activating this Series Model will likely require both producers and consumers to pay more upfront. But these costs should be framed as an economic offset for all stakeholders.

The extra dollar spent on a modular manufacturing schema saves countless dollars on retooling for new gadgets, shipping, warehousing and more. Value-conscious consumers are now ready to see the long-term savings of buying modular products from trusted brands.

The first mover in this space has an opportunity to bond with customers. To cement an enduring relationship with Millennials. And to innovate for this recession in a way that future-proofs its business for decades to come.



Marcus Oliver is an Innovation Director at innovation consultancy Fahrenheit 212 in New York. Fahrenheit 212 delivers bigger ideas, faster to market.

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Identifying Innovation

I want to return to an issue that sparked some healthy debate a few weeks ago but didn't go far enough in my opinion.

When Michele Obama first announced the Office of Social Innovation, bloggers like Allison Fine posed some really important questions about what is meant by innovation and how to ensure that the government doesn't just reward the largest and most tested programs in lieu of smaller, sometimes newer, and even untested efforts at innovation. I'd like to pose this same question to the philanthropic sector.

How does innovation get funded and are we ok with the way it currently works?

Everybody knows that these are tough times for nonprofits and even tougher times for new nonprofits, IssueLab among them. We frequently hear from foundations that they are only supporting their existing grantees or that they aren't currently accepting proposals from organizations they don't already know. (A recent online discussion about grantwriting at Charity Channel only underscored the fact that we are hardly alone in this experience.) It's not that I don't understand the pressures foundations are under but if they aren't going to fund newcomers for the next two years how exactly will innovation get funded? And what sorts of innovative projects will simply disappear because they don't have the necessary funds to continue their work?

The difficulty in even introducing new ideas to potential funders reflects what I think are two conflicting values at work here. Foundations (and the government) want to support innovation but at the same time they place enormous value on legitimacy. We see this everyday in the work that we do at IssueLab. One of our core missions is to build visibility for the work of smaller nonprofits. There is no shortage of great research coming from organizations that maybe produce one or two reports a year. But these reports don't get the kind of search engine rankings, graphic treatment, traffic, or audience that are too often confused with legitimate research.

Anyone who has ever read anything about job training programs knows the critical role that legitimacy plays in the vicious cycle of poverty. If you don't look the part you don't get the job and if you don't get the job you will never have the resources to look the part. The second nasty thing about legitimacy is of course the question of access. Organizations and individuals who lack legitimacy also lack access. And in the case of funding innovation, they simply lack access to funding opportunities and to exposure for their ideas. At IssueLab we spend a great deal of time actively searching for research from smaller organizations. It's key to the work we do and it's why our collection can include research from a small after-school media project alongside research from the MacArthur Foundation. What will foundations and the Office of Social Innovation do to identify innovative projects?

What are the equivalent measures in the sector for judging the legitimacy of organizations? Other funders, name recognition, buzz, scale, earned income revenue, the ability to measure results and impact? How many innovative startup projects and organizations can claim all these measures? And will they have access to either the Office of Social Innovation or to ever scarcer foundation funding?

If as a sector we don't answer these questions, I am afraid we won't even know what we're missing!



Gabriela Fitz is the Co-Director of IssueLab, a publishing forum for nonprofit research. She and her team blog about third sector research on IssueLab's blog "FootNotes"

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Sunday, July 05, 2009

Who is the Best Innovation Author?

Thanks to all of you, Blogging Innovation has experienced incredible global growth (even in Portuguese). To better serve you, the Blogging Innovation readers, I have decided to open up this blog to publishing the best innovation and marketing strategy insights from around the web.

While I will still be writing articles for the blog, I will now become more of an editor and caretaker of Blogging Innovation and the Continuous Innovation group on LinkedIn. I will be focusing on publishing only the highest quality global innovation and marketing strategy insights from ad hoc and regular contributors. I've got a few re-publishing agreements in place but am looking for more.

If there is an innovation author you think I should approach about writing for Blogging Innovation, please contact me or post a comment below. I am seeking:

Articles - for Blogging Innovation (guest author example)
Videos - for Innovation Interviews, YouTube, or Vimeo channels

Or, if you are an innovation practioner and have a thought leadership piece, interesting case study, or a great e-mail or video interview that you would like to share with the world, please contact me, post a comment, or send me an @reply on Twitter.


I look forward to bringing you even more exciting new content!


Braden Kelley (@innovate on Twitter) - Editor of Blogging Innovation


NOTE: Potential authors - Unique material is ideal, but I am happy to re-publish a great article from another blog. Embedded video and pictures are fine as long as your inclusion of this material complies with copyright laws. I won't be able to publish every submission, so I apologize in advance to those not selected.

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Thursday, July 02, 2009

Innovation Insight Contest Winner

Congratulations to Evelyn Hannon!

Evelyn has won the Innovation Insight Contest and a copy of "Rethink" by Ric Merrifield.

Thank you to everyone who submitted their favorite innovation insight or quote, and to all of you that voted. I hope that you had fun with the process. If you have any suggestions for future contests, please add them as a comment to this blog post or send an @reply on Twitter to @innovate.

Here is the winning entry from @Journeywoman (Evelyn Hannon):

"Question all rules. 1900 Olympics only 15 women took part. It was feared if she ran too fast her uterus would fall out."

While all of the entries were great, there were a couple of things that struck me when I read Evelyn's entry that aren't explicity in the text:

  1. Smart organizations don't see innovation as an effort, but as a movement. Too often we let the "rules" limit us, instead of seeing the rules as something to test against in stages over time.

    • Why have things always been done a certain way? Why is it a rule?

    • What prohibits us from doing them differently?

    • What changes would have to occur for a particular challenge to become easier?

    • What changes would have to occur for a constraint to no longer exist?

    • What insights can we uncover from apparent contradictions?

    • What is our plan for achieving the collective incremental changes that will result in an overall rule change?

  2. Too often the "rules" are determined by the companies building the industry over time.Disruptive innovations often occur when a new entrant seeks to understand what customers think the "rules" should be.

    • Industry "rules" are usually built around operational efficiency goals

    • Existing airlines believed the "rules" were focused on hub-spoke efficiency and network size

    • Southwest Airlines recognized that customers believed the rules of the industry should be based on price, customer service, and convenience (point to point travel)

Are you questioning the rules?


Here is a bit more information about the winner:

In 1982 when few women were doing it, Evelyn Hannon put a backpack on and went out into the world to travel solo. An early adaptor on the web, in 1997 she began telling her travel stories online at Journeywoman.com which today is the largest online travel resource for women. Her mandate remains to inspire women of all ages and at all stages of their lives to travel safety and well, and to connect female travelers around the world. Now approaching 70, Evelyn continues her travel writing and is considered the guru of 'how to' in women's travel. Each morning Evelyn sends out one JW Tip of the day to over 2000 Twitter followers. TIME Magazine named her 'one of the 100 innovative thinkers of this new century' for the work she does on behalf of 'women travelers.'


If you're passionate about innovation, join the lively innovation discussion on the Continuous Innovation group on LinkedIn:


Braden Kelley (@innovate on Twitter)

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Wednesday, July 01, 2009

Innovation through the Eyes of a Child

In the first video, Gever Tulley describes our child safety-obsessed culture and the impact this has on the young minds of our children. He then speaks about the different impact you can have by teaching your kids how to play with dangerous stuff. He highlights five dangerous things to let your kids play with, but is working on a book that will highlight 50 dangerous things. Check out the video:





In the second video, Gever Tulley demonstrates the valuable lessons kids learn at his Tinkering School. When given tools, materials and guidance, these young imaginations run wild and creative problem-solving takes over to build unique boats, bridges and even a rollercoaster!





On his blog he lays out the principles of kit-based learning, which are great things for teachers and parents to think about when teaching science to children. Parents have an incredible opportunity to supplement the achievement test-focused learning their kids receive in school, and have fun with their children, if they take on this kind of interactive learning with their kids.


Principles of Kit-based Learning

The goal of any kit must be to teach how to think about the principle concept - the understanding and internalization of the concept comes naturally from the process. Memorizing the gravitational constant is not as useful as grokking the notion of gravity and developing a personal understanding of mass (constant) and weight (varies depending on context).

1. Focus on the quality of the experience first
  • like a story arc, plan for successes and setbacks

  • all stages of the project should be engaging and driven forward by the participants

2. Allow for personal expression within the experience
  • design variability into the project

3. Leave something to be discovered
  • some questions unanswered

  • some capabilities of the kit unexplained

  • some implications unstated

4. Support failure, require tinkering to get it right
  • allow for incorporation of external materials (but don't require it)

  • instructions should only get you close to a solution, how close depends on the target audience.

5. Focus on a concept, but connect it to the world and the sciences
  • relate it to actual things in the world that the participants can identify and recognize

6. The experience should transition smoothly to tangential or subsequent topics
  • consider the kit as a part of a larger experience

  • avoid a hard definition of "complete" or "finished"

You can find pictures of the first kit, here.

As we look to work our way out of this current crisis, the countries that foster innovation, creativity, and entrepreneurship in students alongside reading, writing, and arithmetic will be the counties that earn their place at the top of the economic pyramid. Those that don't will continue to slide downwards.

For further reading, check out:

Innovation in Education

Creativity versus Literacy

Twitter in the Classroom


Can countries achieve competitive advantage by teaching their kids to be more innovative, creative, and entrepreneurial?


What do you think?


Braden Kelley (@innovate on Twitter)

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Design, Discovery and Humor

Here is an interesting and funny video from Ted with David Carson speaking about the importance of graphic design and intuition:



During his presentation, David Carson uses a great quote on intuition:

"The intellect has little to do on the road to discovery. There comes a leap in consciousness, call it intuition or what you will, and the solution comes to you, and you don't know how or why." - Albert Einstein

He also talks a bit about how the pendulum is swinging slighty back from simplicity in graphic design, and how as we become more digitally driven, graphic design will feature more people and more handwriting.


What do you think?


Braden Kelley (@innovate on Twitter)

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Five Finalists - Innovation Insight Contest



In honor of the impact that Twitter has in democratizing information, Blogging Innovation is awarding a copy of the only business book I know of with a green cover - "Rethink" by Ric Merrifield - and a quick winner's profile on this blog, to the winner of the innovation insight contest.

The voters have spoken and we now have five finalists (as determined by your @reply and comment votes).

I now have the unenviable task of choosing a winner from amongst these five great entries and announcing the ONE (1) winner on July 2nd via my profile on Twitter and on this blog with a quick profile of the winner, their winning entry, and a link to their web site.



Here are the five finalists (ordered by number of votes received):
  1. "90% of what we learn comes AFTER we launch a new product." - Eric Feng, CTO of Hulu - @veget

  2. Question all rules. 1900 Olympics only 15 women took part. It was feared if she ran too fast her uterus would fall out. - @Journeywoman

  3. Insight in a Marketing-driven company is hindsight, while Insight in Innovation-driven company is foresight. - @Lerou

  4. Research is the transformation of money into knowledge - Innovation is the transformation of knowledge into money! - @Lerou

  5. Implementing best practice is replicating yesterday; innovation is designing tomorrow. - @paulsloane

If you're not on Twitter, make sure you subscribe to the RSS feed to find out who the one winner will be.

I look forward to announcing the innovation insight contest winner tomorrow!


Join the lively innovation discussion on the Continuous Innovation group on LinkedIn:


Braden Kelley (@innovate on Twitter)

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