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Friday, March 05, 2010

What's the Best Environment to Improve Innovation?

by Michael A. Dalton

What's the Best Environment to Improve Innovation?I had an interesting discussion recently with a company vice-president that asked me what he could do in terms of facilities design to make the work environment more conducive to innovation. Anyone familiar with my Theory of Constraints (TOC) based approach to innovation improvement will know that my response was to ask him if the facility was his innovation bottleneck. After getting an unsure look, I continued and asked what one thing was most constraining his organization's new product throughput.

He pondered my question for a second or two and replied, "I guess I'd have to say that it's finding more impactful new product ideas."

That made my response simple. "Then if you want to create a better environment for innovation, get out of yours and into theirs."

He stared at me with a puzzled look for a moment then smiled. "So the internal stuff isn't where I should focus."

Bingo - one of the most impactful things a leader can do is to keep their organization focused on high leverage activities. But internal facilities were far from his biggest problem.

Of course, it's the era of design. So I don't mean to completely dismiss the role that the physical environment and culture can play in fostering creativity. If you're putting up a new building, it's probably worth considering. Having worked in situations where R&D and marketing were located in separate buildings and where they were co-located, I can say that locating them together definitely helps people interact and problem solve more easily. Similarly, I've worked in some cutting-edge facilities from a design and aesthetic view. Who could argue against having views that inspire, lots of open spaces, and ample team meeting areas?

But for most companies, it's really missing the point to make the R&D and office work environment the focus of your innovation improvement efforts. Instead, the important thing is to get people out of the office more often to visit customers and end users in their work environments. That's where the actual problems exist and where the real inspiration for new products will come from!

The best new products solve customers' problems by simplifying or eliminating costly, difficult, time consuming, or unpleasant tasks. These kinds of ideas aren't likely to come to your people while they're in the office. These problems live out in the market. An entire discipline of ethnographic research has grown out of watching users in action to identify these problem tasks. When researchers see these problems firsthand, they get additional insights into the problem that lead to a better solution.

The 3M Post-it is a great example of the how getting out of the office can help create great new product ideas. 3M Scientist, Art Fry, was a singer in his church choir and was frustrated when the little bits of paper he used to mark pages kept falling out of the hymnal. Unfortunately, he couldn't use any of 3M's tape products because that would have torn the pages. Fry invented Post-its when he recalled the poor adhesive one of his colleagues had accidentally cooked up and began using it to make his hymnal markers easily removable.

Customer focused innovation works best when researchers can get out and see the problems firsthand. When SC Johnson researchers observed consumers problems with cleaning the shower, they invented the Scrubbing Bubbles automated shower cleaner as a way to simplify the job. Push the button on your way out of the shower and it keeps the shower clean for you. Sometimes it takes development people with a strong understanding of the technology to see the customers' problem and at the same time envision how they can solve it.

Many companies will struggle with this advice because they leave the customer interaction to sales and marketing. But limiting your R&D group to work on the ideas that others bring in is like asking them to work with part of their brain tied behind their back. Often, these companies come to me saying that they have plenty of ideas, but they just aren't seeing the results they had hoped for out of new products. Well, it's no wonder. Most sales and marketing people focus on selling what's available today. Occasionally they look for opportunities to tweak or customize products. That can create new business but rarely results in high growth new products.


The Simple Bottom Line:

Work environment plays a role in innovation and creativity, but if your constraint is in finding better opportunities, you'll do better to focus externally on the customers work environment. That's where the problems are. If you can connect your development with those problems, that's also where you'll see the most new product impact.


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Mike DaltonMike Dalton is the Chief Innovation Coach for Guided Innovation Group and the author of "Simplifying Innovation" and the Simplifying Innovation Blog. Guided Innovation Group has a simple mission - helping companies turn their new product innovation into more bottom-line impact.

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Sunday, August 30, 2009

Rewarding People for Helping the Planet


by Kevin Roberts

If guilt is the gift that keeps on giving, here's an easy way to break its grip. We're all aware of the things that we can be doing to improve society, the community, the environment - but frequently we don't get around to activating this desire, usually because it involves sacrifice or getting around some inconvenience.

Recycling is one thing that's easiest enough to do, yet we don't recycle as much or as often as we could. Eighty percent of all garbage is recyclable, yet the average residential recycling rate is less than 20 percent. Recycling saves cities millions of dollars in landfill and disposal fees, saves trees from the paper mill, and even millions of gallons of oil from use.

Some point this as a result of problems in the infrastructure of cities or simply that it's not convenient enough to do. Some of our cities are better placed with bins and programs, while other cities leave it entirely up to your own persistence.

Maybe we need more incentive to do so? That's the approach from the people at RecycleBank. They have introduced the element of rewards into how and when you recycle for both curbside pickup and electronic waste recycling.

RecycleBank's slogan is "Rewards for people and planet". So what do people get? Similar to an airline rewards system, you earn points that are redeemable for goods or discounts from retailers. Some pretty big names have signed on - Target, Kraft, Sears, Evian, and Bed Bath & Beyond.

Headquartered in New York City - about three blocks from the Saatchi & Saatchi office - and co-founded in 2005 by Ron Gonen, RecycleBank now serves over 20 million people in America. Last week, Mayor Daley in Chicago instigated the RecycleBank program in 10,000 households. This summer they launch in Europe. They're also expanding the program to include additional Blue actions, e.g. using solar and wind power, efficient use of water, riding public transportation, or buying products that are manufactured from recycled content.

I think the idea is a very good one, as do some of the savviest venture capitalists in America - Kleiner Perkins are among the investors. For what it's worth, the United Nations and World Economic Forum agree. Incentives can be a smart strategy for any product or service, especially when those coincide with rewards for the planet. Now that's Blue Thinking.


Image Source: RecycleBank.com



Kevin 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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Tuesday, July 07, 2009

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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Wednesday, February 25, 2009

Is Electrolyzed Water a Cleaning Innovation?

Add salt to water, scramble its ions with a jolt of electricity, and what do you have?

Apparently a quite versatile cleaning solution. One that Russia and Japan have been using for over a decade.

Can such a simple cleaner get the job done and save the environment at the same time?

Check out the video and go here for more detail:



What do you think?

@innovate

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