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October 28, 2006

How Novartis does innovation

Vasella%20Novartis.jpg

In a one-hour video presentation for MIT World, Novartis Chairman and CEO Daniel Vasella explains the innovation process behind one of his company’s flagship pharmaceuticals, Gleevec. The discovery, development and marketing of this drug, which fights the rare chronic myeloid leukemia (CML), highlights some of the things Novartis does right. For example, during an important period of coordinating clinical trials and winning FDA approval for the drug, employees at Novartis volunteered to work in 24-hour shifts, seven days a week. In summarizing the success of the innovation process at Novartis, Vasella cites “intrinsic motivation in each Novartis staff member, high standards, savvy risk-taking and persistence in both research and marketing, and a company culture that brings out the best in everyone."

As always, MIT World provides excellent show notes for the one-hour presentation. There's also a brief bio sketch for Vasella and a short history of how Gleevec started out as an untested idea and emerged as a multi-billion-dollar blockbuster drug.

[image: Daniel Vasella of Novartis]

Four effective Innovation strategies in practice

Collaborate with your worst customers: In the words of Bob Dylan, "When you ain't got nothin' you got nothin' to lose." You have little to lose by collaborating with a customer who is dissatisfied with your offering and probably intends to leave. Typically, we don?t do this, because it?s painful, but these customers may actually provide the innovative solution to your challenges, as well as growth. Ask them, what's working and what's not. Chances are that they will tell you. Then ask them, what would you like to happen and how would you make it happen? The key is to move you out of the reactive relationship with a customer and to have them participate in creating a vision, or even a solution. People typically don't resist the ideas that they helped create. It important to remember that every time you solve a problem, that you have created a potential product or service, if packaged and replicated properly. Don't just look for customer satisfaction or retention; look for ways to produce customer success. Show; don't tell. Famed product design firm IDEO created prototypes of the original Apple mouse and iPod out of everyday materials, such as a bar of soap. In an age where most people have a camcorder and computer, it's very easy to create a mock-up or some other proof of concept for an idea. Remember to always tell the story from their point of view; show how it will improve their lives. Hide your innovative idea inside a Trojan horse project. Stop wasting your time trying to drum up support from people who don't see the value of innovation. Instead, identify the key stakeholders in your organization who are pro-change and innovation. Work to understand their point of view, their plans and pet projects. See if you can include your innovative ideas inside their projects like a Trojan horse. This means that your project will have to support someone else's agenda and goals. Through these Trojan horse projects, you have the freedom to experiment, validate your concept, demonstrate success through metrics and build your innovation constituency, all with minimum resistance.

Which innovation metrics do you use?

BCG%20Innovation%20Metrics.jpg

In the current issue of its Serious Innovation newsletter, Swedish innovation lab Idélaboratoriet profiles a recent Boston Consulting Group report on innovation metrics. The BCG report, which is available as a free 17-page PDF document, highlights five key findings:

(1) Innovation is widely under-measured and few firms - even those that attempt to track innovation rigorously - are confident they're doing it right;

(2) The majority of companies that do use metrics typically use only a handful (i.e. five or fewer);

(3) The three most valuable metrics are time to market, new product sales, and return on investment in innovation;

(4) Few companies tie employee incentives to innovation metrics;

(5) The potential for most companies to improve their measurement practices is sizable.


[graphic: BCG Senior Executive Innovation Metrics Survey]

Craft + creativity = Craftivity

Craftivity.jpgThe DIY lifestyle movement continues to gain momentum. Neatorama profiles a new book from Tsia Carson called Craftivity: 40 Projects for the DIY Lifestyle. The book is basically a primer on how to turn everyday, household items into designer goods:

"Have a pile of extra buttons and don't know what to do with them? Make a cool bracelet. Need some pillows for your new couch, and have a bunch of old wool sweaters? Turn those sweaters into felt and make pillows so beautiful you could sell them at any store. Knitting, felting, glass, and woodwork—it's all here. Craftivity is filled with 40 amazing DIY projects that show you how to take everyday objects and turn them into functional, fabulous art."

In Craftivity, you can learn how to make a unique coffee table out of a vintage suitcase, use a simple picture frame to construct a back-painted glass backgammon board, and transform plastic grocery bags into a durable tote. Oh, yeah, and if you want to learn how to transform a simple t-shirt into fashionable underwear, you can learn that too.

ROGER von OECH’s BALL OF WHACKS: A CREATIVITY TOOL FOR INNOVATORS

Whacks.jpg

Check out creativity guru Roger von Oech’s new creativity tool, a ball that consists of 30 magnetic design blocks, so you can transform it into numerous shapes. Check out the Whacks video here. It’s $19.77 on Amazon.

Also, Roger recently launched a blog, a must read!

[UPDATE: I had the great privilege of meeting Roger this afternoon - what a blast to the mind! THANKS Roger for the meeting - it was great to meet you - and I think the Ball of Whacks is going to create BIG problems.  It’s strangely addictive.  I can’t stop playing with it! To prove that it stimulates creativity, I will start a post now featuring a whacky idea playing with the ball inspired.  Stay tuned.]

October 23, 2006

The USA must be the world's innovator

Mitt%20Romney.jpgAccording to Massachusetts Governor Mitt Romney, innovation is the key to the future for the United States:

"The U.S. may be the world's only superpower, but this is no time for the nation to rest on its laurels, Massachusetts Gov. Mitt Romney said... "If we sit back and think we're the best, we could become the France of the 21st Century,'' Romney told about 60 people at a breakfast fundraiser... Instead, the two-term Republican governor of one of the most liberal states, called for investing in education and technology to keep America on the cutting edge. "The only way to remain a superpower, to be prosperous'' in the face of increasing competition from Asian nations, "is to be the world's innovator.''

Obviously, Governor Romney is not looking to court the French-speaking vote anytime soon.

[image: Mitt Romney]

Office Egos and Hamburger Management

Over at Management Issues, Susan Debnam has an interesting post called "Office egos uncovered". Here's some of what she writes:
Wherever we look we see egos at work. In business (most boardroom battles are about ego), politics, themedia, the church, the armed forces or the local voluntary group. There will always be those who ask primarily 'what's in it for me? How will I look? How will this action affect my career, my status, my credibility?'

So what? You could say organisations have been living with the garrulous, demanding, calculating behavioural manifestations of ego-driven individuals for decades. Some might even argue that corporate life would be the poorer without the energy and charge that egos deliver.

Egos aren't intrinsically bad. They have drive and energy that can be infectious and, if used appropriately, can be highly productive. But they don't come with a user manual. When they reside in individuals or organisations that lack awareness of their impact they can wreak personal and corporate havoc.
Egotism seems to be an intrinsic part of Hamburger Management. I suspect that is because these macho management styles are sold to people on the basis that getting things done, even when it all seems impossible given the time and resources, will make you look good. And egotism is all about me, isn't it? My career, my targets, my job security.

Here are the business qualities and behaviors Ms. Debnam gives as examples of ego-free leadership:
  1. Put the business agenda ahead of your own agenda
  2. Recruit the best person for the role – not just personal supporters
  3. Discourage empires and cliques
  4. Encourage people to challenge the status quo and question existing methods and strategies
  5. Encourage leadership to flourish at all levels of the organisation
  6. Respond to change initiatives according to business need vs personal need
  7. Leave a legacy of ongoing excellence
This sounds very like Slow Leadership to me. All I would want to add is something like this:
  1. Encourage good work and discourage cutting corners, even if it takes longer
  2. Delegate everything you can (and then some)
  3. Never trade off thinking time for mere busyness
  4. Remember success is about creating long-term value, not snatching short-term profits
  5. Enjoy life, it's the only one you have
As Ms. Debnam concludes:
The ripple effect of ego-free leadership is to create a culture in which people are free to take risks, to learn from mistakes and deliver in a way that's less stressful and more creative than in an ego-driven environment.


Knocking the exuberance out of employees

Robotemployees


In an earlier post I said, "If you asked the head of a company which employee they'd prefer: the perfect team player who doesn't rock the boat or the one who is brave enough to stand up and fight for something rather than accept the watered-down group think that maintains the status quo (or makes things worse), who would they SAY they'd choose? Who would they REALLY choose?

In his book Re-imagine", Tom Peters says, "We will win this battle... and the larger war... only when our talent pool is both deep and broad. Only when our organizations are chock-a-block with obstreperous people who are determined to bend the rules at every turn..."

So yes, I'm thinking Mr. CEO of Very Large Company would say that their company should take the upstart whatever-it-takes person over the ever-compromising team player. "If that person shakes us up, gets us to rethink, creates a little tension, well that's a Good Thing", the CEO says. riiiiiiiiiight. While I believe most CEOs do think this way, wow, that attitude reverses itself quite dramatically the futher you reach down the org chart. There's a canyon-sized gap between what company heads say they want (brave, bold, innovative) and what their own middle management seems to prefer (yes-men, worker bees, team players). "

I'm not done with my horse-training-as-universal-metaphor phase, so here's another thing I learned from the Parelli Natural Horsemanship conference:

"Too many people fall into the my robot is better than your robot trap... and knock the exuberance out of their horse. What you're left with is a well-trained robot, not a curious, playful, mentally and emotionally balanced living creature."

"Hmmmm", I thought, "that sounds an awful lot like some of the companies I've worked for." Not that you'd ever in a million years get them to admit that. Possibly not even to themselves. But the proof is in their practices. Of course some argue that exuberance on the job is not necessarily a good thing. That too much passion leads to problems. I say BS on that one. Real passion means you love the profession, the craft, the domain you're in. And that may or may not happen to coincide with a passion for your current employer. When some folks talk about too much passion for a job, they're usually referring to something a little less healthy... the thing that lets your employer take advantage of you, having you work round the clock because of their bad scheduling, or because they refuse to say "no" to clients, or because you have a manager that wants to look good to his manager... and you're the lucky one chosen to be the "hero."

If you knock out exuberance, you knock out curiosity, and curiosity is the single most important attribute in a world that requires continuous learning and unlearning just to keep up. If we knock out their exuberance, we've also killed their desire to learn, grow, adapt, innovate, and care. So why do we do it?


Why Robots Are the Best Employees

1) They don't challenge the status quo

2) They don't ask those uncomfortable questions

3) They're 100% obedient

4) They don't need "personal" days.

5)... because they don't have a personal life

6) They never make the boss look bad (e.g. stupid, incompetent, clueless, etc.)

7) They dress and talk the way you want them to

8) They have no strongly-held opinions

9) They have no passion, so they have nothing to "fight" for

10) They are always willing to do whatever it takes (insane hours, etc.)

11) They are the ultimate team players

12) They don't complain when you micromanage (tip: micromanaging is in fact one of the best ways to create a robot)

13) They don't care what their workspace is like, and don't complain if they don't have the equipment they need

14) They'll never threaten your job

15) They make perfect scapegoats

16) They get on well with zombies
Zombiefunction_2

And while I'm here... parents do this as well. Admit it. We have all wished that our children (for whom we worked so hard to instill a fierce independence) would be strong-willed, exuberant, questioning--everywhere but at home. I've never really wanted Skyler to be a robot, but oh how I've wished for a robot mode... ; )

The Good Housekeeping Seal of Innovation

GH-Institute-Staff.jpgSarah Ellison of the Wall Street Journal recently profiled the changes afoot at the R&D unit of Good Housekeeping magazine:

"The research arm of Good Housekeeping magazine has been testing products for more than a century and granting advertisers who pass muster its famous seal of approval for almost as long. In its early days, the magazine's "experiment station" was designed to help new brides become better housekeepers.
The Hearst Corp. magazine has evolved since then, but it is its testing lab -- now called the Good Houskeeping Research Institute -- that has undergone the biggest facelift of late as the magazine pushes to maintain its position among traditional women's titles while fending off arriviste like Martha Stewart Living, Real Simple and O, the Oprah Magazine."

Anyway, the Good Housekeeping Research Institute has a new 20,000-square foot facility in midtown Manhattan, equipped with soundproof rooms, a climatology chamber, and multiple test kitchens and labs. The institute also has the full backing of Rosemary Ellis, the magazine's new editor-in-chief. Already, there are plans to make the institute's R&D services more prominent, such as by using product testing from the institute as the backdrop for regular segments on "Good Morning America" and "Today." The magazine is also giving the testing lab a broader mandate to do original research and to "sniff out" faulty products and potential consumer frauds.

[image: Researchers at Good Housekeeping]

Never make the coffee... and beware the innovation consultants

The%20Office.jpgIn a humorous piece for the Guardian Unlimited, Guy Browning highlights 20 tips for succeeding in the modern workplace. Rule #1, of course, is "never make the coffee," A close second is "ignore all e-mails." In the piece, Browning also finds time to skewer consultants:

"A consultant is someone in business with an ego so large it takes more than one company to support it. At a personal level, consultants work either by trying to inspire fear or trying to be friends. It's in trying to be friends with you that they inspire the most fear. The acid test of a consultant is whether they can say, "Everything's fine, we'll be off then." No real consultant can. Instead they will sell you a project that costs just enough to keep your profits suppressed to a level that requires further remedial consultancy."

As well, Browning suggests that, instead of writing a new report, it's often best to recycle an older report:

"Reports are the office equivalent of cones in the road. They are not actually work themselves but they are a big, clear sign that real work might be done at some stage. In the meantime, they slow everything down and cause anger and annoyance all round. The quickest and easiest way to write a report is to change the names in the last report. When you do this, be aware that there will always be one name that escapes your changes and that will be in the sentence,.."

[image: The Office]

Interaction Design Books

There are a number of new books published (and soon to be published) about Interaction Design. Here’s a quick summary of what I’ve come across recently:

Designing Interactions
by Bill Moggridge
Bill Moggridge, designer of the first laptop computer and a founder of the design firm IDEO, tells us stories (in the form of interviews) from an industry insider’s viewpoint, tracing the evolution of ideas from inspiration to outcome.

Designing for Interaction: Creating Smart Applications and Clever Devices
by Dan Saffer
Saffer gives an overview of the history, current practice, and the future of the rapidly evolving discipline of interaction design.

Designing Interfaces
by Jenifer Tidwell
Designing Interfaces captures interaction design best practices as design patterns: solutions to common design problems, tailored to the situation at hand with a variety of examples.

About Face 2.0: ?The Essentials of Interaction Design
By Alan Cooper & Robert Reimann
The examples in About Face 2.0 are updated to reflect the latest advances in interaction design, as well as principles specifically addressing Web and handheld platforms.

Thoughtful Interaction Design: A Design Perspective on Information Technology
by Jonas Löwgren, Erik Stolterman
The authors of Thoughtful Interaction Design go beyond the usual technical concerns of usability and usefulness to consider interaction design from a design perspective.

Analog In, Digital Out: Brendan Dawes on Interaction Design
by Brendan Dawes
Dawes shares both the techniques he has created and the key lessons he has learned in design: why comfort is the enemy of creativity; how mistakes can be celebrated instead of feared, and how to strip design to its purest and most powerful forms.

Designing the Obvious: A Common Sense Approach to Web Application Design
by Robert Hoekman Jr.
Designing the Obvious explores the character traits of great Web applications and uses them as guiding principles of application designs such as: building only whats necessary, getting users up to speed quickly, preventing and handling errors, and designing for the activity.

Thoughts on Interaction Design
Jon Kolko
A book about Interaction Design theory that deals with issues like linguistics, and metaphor, and the relationships between theory and practice.


Two other recent books that are not as focused on Interaction Design, but are related nonetheless:

Communicating Design: Developing Web Site Documentation for Design and Planning
by Dan Brown
From usability reports to project plans, content maps, flow charts, wireframes, site maps, and more, each chapter includes a contents checklist, presentation strategy, maintenance strategy, a description of the development process and the deliverable's impact on the project, and more.

Information Dashboard Design: The Effective Visual Communication of Data
by Stephen Few
This book will teach you the visual design skills you need to create dashboards (uniquely powerful tools for communicating important information at a glance) that communicate clearly, rapidly, and compellingly.


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October 20, 2006

Creative ads

Long live creative advertising.

(via ifun.ru)

Drop Spots

Thanks Vlad for pointing me on Drop Spots:

A dropspot is a kind of alternative mailbox. It’s a hiding place in a public space, where people can leave things for exchange. Anything. It’s a weird and wonderful way to add personal character to the streets that we live in. Stash something fun and see what you get back.

To find a Drop Spot in your neighborhood, visit the Drop Spots map. Select a Drop Spot map marker near you, make note of its location and visual description and head out the door to find it! Once you locate the spot and discover your mystery gift, make sure to leave one in its place to keep the exchange going.

Why do I blog this? yet another interesting potlatch-like approach of sharing in today’s environment. Similar to bookcrossing but there is here the notion of exchange. I also appreciate the idea of “alternative mailbox”, which is somehow a portion of territory where people leave traces. I have to admit that I am more interested by this sort of innovation than yet-another-place-based-annotation-systems (virtual post-its) that seem to pops up everywhere. This is exactly what Georges Amar explained at the CINUM2006 presentation last week: he described how pedibus (a non technological innovation but a practice: a walking school bus) is one of the most interesting innovation he ran across lately.

Innovation inspired by nature

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In a special thought leader interview for strategy + business magazine, Janine Benyus discusses her groundbreaking work in the emerging field of biomimicry. According to Benyus and other adherents of biomimicry, corporations can become more profitable and more innovative simply by following the example of Mother Nature:

"By emulating the patterns and designs and strategies in plants, animals, and ecosystems, they argue, corporations can become cleaner, leaner, and more consistently innovative. For the past decade, one of the most influential voices in this school of thought has been that of Janine Benyus.
Ms. Benyus was the first to identify the nascent discipline, which she dubbed “biomimicry” and galvanized with her groundbreaking 1997 book of the same name. Biomimicry, writes Ms. Benyus, is “the conscious emulation of life’s genius.” To practice biomimicry, a technologist must turn away from conventional “heat, beat, and treat” industrial processes, and study “what works in the natural world, and more important, what lasts.”

As Benyus explains in the interview, the biomimicry movement has already caught on with designers, engineers and architects. Now, senior executives are warming to the idea of growing sustainable businesses that are in sync with the surrounding environment. In fact, a Biomimicry Guild established in 1998 now has more than 200 clients, including many FORTUNE 500 companies.

[image: Janine Benyus at PopTech]

Dilbert and the zone of mediocrity

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How brave are you? How far will you (or your employer) go to avoid the Zone of Mediocrity? Until or unless you're willing to risk passionate hate, you may never feel the love. Scott Adams agrees. In a recent post on the Dilbert blog, he said, "If everyone exposed to a product likes it, the product will not succeed... The reason that a product “everyone likes” will fail is because no one “loves” it. The only thing that predicts success is passion, even if only 10% of the consumers have it."

This is NOT about being remarkable-- it's about being loveable. And that almost always means being hated as well. Our Head First Java book, for example, has 139 Amazon reviews, and most are either five stars ("love it, best technical book ever, I learned a lot") or one star ("hated it, worst technical book ever, authors should be shot.") But crafting a book that people would either love or hate was not our intention. We set out to make a more brain-friendly learning book format, and we were just clueless and naive enough to not realize how many implicit "rules" we were violating. It wasn't until O'Reilly editors started a mini revolt against it that we knew we'd crossed a Line That Shall Not Be Crossed and created something potentially embarrasing.

Today, it is often far more risky to create something "safe" than to take a big frickin' chance on something deeply provocative, dangerously innovative, or just plain weird.

Think about all the things you love today that once seemed very, very weird. Things that someone took a huge frickin' chance on.

Today, the more you try to prevent failure, the more likely you are to fail.

That wasn't always true, but geez... how many more [whatevers] do we need today? There are way too many of all the things we already have and not enough introductions of things we don't have. We all know the reasons why companies play it safe, and why employees are often forced to play it safe, but this me-tooism isn't helping anyone.

What does it take to move out of the Zone of Mediocrity?

Normally at this point I'd talk about the usual things everyone talks about... how to come up with breakthrough ideas, where to look for opportunities, being innovative, blah blah blah. You know all that. I think it really comes down to this:

To avoid the Zone of Mediocrity, you must suspend disbelief.

You must be willing and able to turn off (temporarily) The Voice inside that says, "We'll never get away with this. People will hate it." That doesn't necessarily mean The Voice is wrong, but until you can shut if off, you're virtually guaranteed to stay with safer, incremental ideas. But remember--"safer" really isn't safer anymore, unless you're looking only to avoid criticism. Safe will keep you safely out of the spotlight. If that's what you want (and sometimes that's the best approach), then fine. But if not...

(side note: this is somewhat like The Inner Game approach or Drawing on the Right Side of the Brain or any of the other approaches to creativity that get your logical "talking" mind out of the way so all the more useful but non-speaking parts of your brain can get on with the important things you're trying to accomplish.)

And it's not just suspending disbelief about what users (or critics) will say... you must also suspend disbelief about what your company will let you do. I first experienced this at Sun, where it was almost impossible to creatively brainstorm about ways to improve things without someone jumping in with, "Yeah, but they'd never let us do that." End of discussion. End of chance to do something amazing. Every time I do an internal workshop, the partipants are far more negative than when some of those same people are in a public version of my passionate users workshop. By taking them outside their company and having them brainstorm or work on fictional or other people's projects, their minds are free to move about. I've nearly quit doing in-house workshops because the "they'll never let us do that" syndrome is so strong.

You can't help users kick ass until your employer lets YOU kick ass. Easy for the unemployed ME to say ; )

(Thanks to Karl Nieberding, Kyle Maxwell, and John Radke for telling me about the Dilbert post!)

And one more follow-up note: I heard from the guy who designed the Airstream 75th Anniversary Trailer (wow -- if ONLY I could afford that one, it would have been my first choice). His studio builds custom and restored vintage trailers, and even if you don't want one now, you should still check out his Vintage Trailering site just to see his work. There's nothing mediocre here!

Détournement at its best

Russian website fishki offers very intriguing examples of “détournement” (i.e. tinkering/hacks/DIY bricolage) that I found irresistible. Some instances:


Why do I blog this? some material to keep it handy up my sleeve, jut in case Michel de Certeau’s concepts comes up in the conversation (creativity of people).

October 15, 2006

Follow the Product Leader

Follow the Leader

Follow the Product Manager Leader

We all remember how to do it - both following and leading. Product Managers do not have corresponding authority for all of their areas of responsibility. We have to manage somehow, and what better way than follow the leader?

Outside Reading

Paul, at Product Beautiful, a new blog about high tech product management, has a good article about product manager burnout. Paul uses the circumstances of school psychologists to show that when responsibility does not come with commensurate authority, it leads to burnout. He extends this idea to product management.

We have lots of responsibility with varrying degrees of authority. In almost all cases, PMs don’t have direct management authority over the people who are essential to creating the software, service, or product. For this reason, a PM must develop awesome communications and negotiation skills to be successful and avoid burnout.

Burnout in Product Management

Pragmatic Marketing runs an annual survey to understand, among other things, the reporting structure for product managers in their companies, and what responsibilities the respondents identify. Top in the list of responsibilities for product managers are:

  1. Writing Product Requirements
  2. Monitoring Development Projects
  3. Researching Market Needs
  4. Creating Sales Presentations and Demos

Most product managers have authority at least around researching needs and documenting requirements. Few if any have authority to manage development teams - which is Paul’s point.

Management Style

Paul offers that there are many ways to manage the team - from Command and Control to Follow the Leader. He prefers, and we strongly reccommend follow-the-leader approaches.

Follow-the-leader takes more than communication, it demands inspiration. Different people are inspired by different things. We can inspire people who want to do something important with a vision of the product from a high level - what problems will it solve, how valuable is it, how will the person contribute? We can inspire people who are focused on their own goals - how will this role help them learn and grow, achieve visibility, become more marketable? Each person has a different mechanism. And it is up to us, as leaders, to figure out exactly how to inspire them.

When culture gets stuck

Classical music wasn't always 'classical'.

Geeks spend a lot of time worrying about the cutting edge, focusing on creating digg bait, reaching the early adopters, making something cool enough and fresh enough to capture attention and to spread.

We spend very little time thinking about the other end of the curve.

That's where culture gets stuck.

Once something makes its way to the mass market, the mass market doesn't want it to change. And once it moves from that big hump in the middle of the market to become a classic, the market doesn't just want it to not change, they insist.

So classical music gets stuck because the new stuff isn't like the regular kind, the classics. French food got stuck, because no restaurant could risk its 3 stars to try something new. A convention can't change cities or formats. Schools can't start their curriculum over... the culture gets stuck because the masses want it be stuck.

That's because the late adopters and the laggards have plenty of money and influence--while the early adopters have a short attention span and rank low in persistence.

Inside most fields, we see pitched battles between a few people who want serious change to reinvigorate the genre they love--and the masses, who won't tolerate change of any kind. Hey, there are still people arguing vehemently about whether Mass should be in Latin or not.

History has shown us that the answer is crystal clear: if you want change, you've got to leave. Change comes, almost always, from the outside. The people who reinvented music, food, technology and politics have always gone outside the existing dominant channels to create something new and vital and important.

Influence 2.0

The influential Web 2.0 meme has spawned Influence 2.0.

It's a new model being proposed by Jim Nail and the folks at Cymfony, an analytics company that measures and interprets consumer-generated and traditional media.

Picture_2_8

Cymfony has produced a white paper on the subject, but they show how to eat their own dogfood: The white paper is considered to be a first draft, and the marketing community is welcome to contribute to it via a wiki.

[Transparency note: Jim and I both sit on the board of WOMMA.]

The Shifting Role of Design

My presentation at SHiFT 2006 titled The Shifting Role of Design outlined why in today’s networked, global, disruptive, and dynamic markets design was becoming increasingly important. In particular, I explained why product design, design thinking (design as a problem solving methodology) and design principles provided more value for companies today. Ideally, designers can use this knowledge to communicate the value of design skills and methodologies to clients and stakeholders.

You can download the slides (PDF), but due to the many animations contained within, they will make more sense with the explanations below.

The Shifting Role of Design
As evidenced by proclamations from diverse sources, design is moving from being perceived solely as styling (the “make it pretty approach” typified by Raymond Lowey) to being directly associated with innovation. Why the change?

Markets Mature Faster
Faster adoption, customer acquisition, revenue growth, and competition are all signs of markets maturing faster. When Markets mature faster, function is increasingly assumed and no longer a core differentiator. As a result, design becomes a key differentiator sooner. Product Design, that is.

Continuous Flux
The overlaps between business, people, and technology are increasing. Business are essentially run on technology platforms. People engage with technology in nearly every aspect of their lives. Business and people are overlapping more through crowdsourcing (networked distributed products and services), fab labs (enable nearly anyone to develop products), and personalization (tighter integration between individuals and products).

These wider overlaps mean that any change in technology, people, or business has a more substantial impact on the other two. But not only are these changes more impactful (and thereby disruptive), they are happening more quickly as well.

In these situations of significant and rapid change, design methodologies such as rapid prototyping, abductive thinking, and design is never done can help companies adapt and stay relevant in the market. Design Thinking, that is.

Increased Complexity
The breadth and depth of our information access and tools is continually growing. As a result, information overload is common occurrence. In fact, recent studies have shown that nearly 50% of product returns are due to complexity. Design can help manage that complexity:
  • Through visual communication used to prioritize narratives and communicate key concepts that enable faster consensus and better decisions.
  • By eliminating the unnecessary so that the necessary can speak.
Additionally, our products and companies often have to operate globally in unique market and social contexts. Design helps ensure communication in these contexts, by creating appropriate situations.

When there’s complexity created through information access, product features, and/or globalization, design enables communication. Design Principles, that is.

In Summary
In a networked, global, dynamic, & disruptive economy:
  • Markets mature faster so function is no longer a key differentiator. As a result, product design matters earlier.
  • We are in a state of continuous flux. Design thinking helps companies adapt and stay relevant.
  • There’s increased complexity (information overload, interconnected product ecosystems, globalization). Design principles create meaning.
For more details and data about all the points above, download the slides (PDF) from my talk.

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What outrageous Parisian fashion can teach you about innovation

Outrageous%20fashion.jpgEver wondered who bought those outrageous outfits that the major European fashion houses trot out every year - you know, those outfits in ridiculous fabrics and utterly impractical shapes that you never seem to see anywhere except on the glossy pages of fashion magazines? As Rachel Dodes and Teri Agins of the Wall Street Journal explain, in most cases, nobody actually buys these "outlandish looks." They're simply loss-leaders that create hype and buzz around a certain fashion line. In the best case, this hype and publicity may lead to sales of perfumes, cheap-chic clothes and accessories (in other words, reasonably-priced goods that people actually buy):

"Fashion week in the French capital, more so than in other cities, is a showcase for the world's most creative fashion trends, especially those that will never translate directly into clothing sales. During this week's shows, which end Monday, the innovative looks have included Jean Paul Gaultier's racer-striped fishnet leggings, Karl Lagerfeld's boxy black dress with bubble sleeves, crystal-encrusted leggings at Balenciaga and Comme des Garçons' patchwork-plaid pants and white tutus with a red circle, reminiscent of the Japanese flag.
For fashion's big guns -- Chanel, Louis Vuitton, Christian Dior -- the Paris shows are an elaborate publicity vehicle for the pricey handbags and shoes that make up the bulk of their sales. The Louis Vuitton label, for example, gets only a tiny fraction of its annual sales of $5 billion plus from the ready-to-wear clothing items that its creative director, Marc Jacobs, sends down the runway Sunday. But making a big splash in Paris is still a critical element of every elite designer's marketing plan, keeping the brand visible and exciting in front of editors and A-list fashionistas.

In many ways, I wonder whether big FORTUNE 500 companies tend to view innovative product and service offerings as exactly that - as something to generate buzz and publicity (look! aren't we innovative!) rather than something that is part and parcel of the business model. For example, a lot of companies have latched on to the notion of "cool design" as a key selling point for their products. Is this just a relatively cheap way of appearing to be innovative - or does it reflect a fundamentally new way of thinking about business?

[image: Outrageous fashion from Viktor & Rolf]

October 14, 2006

Creative destruction, through the eyes of Japanese street artists

In this five-minute YouTube video, watch Japanese street artists paint, re-paint, re-re-paint (and re-re-re-paint) a wall with a constantly changing series of beautiful art works over a period of one week. You'll be saying "No!" every time they erase an old painting to start work on a new one...

Learning to Innovate

BusinessWeek recently published a great piece about the growing trend of using design thinking as a means to teach people how to innovate.  I'm particularly proud that the Mozilla project from the Creating Infectious Action class I co-taught with Bob Sutton is the lead story in the article:

Tech geeks love Mozilla's Firefox browser, which is impervious to most viruses, but mainstream America has yet to embrace it. How does Mozilla move beyond invention (cool browser, neat functions) to an innovation that translates into market success (a Net tool so hot it upends Microsoft's Corp.'s Explorer)? It's a perfect problem for a classroom case study. So last spring, Mozilla's business development team turned to Stanford University. But instead of going to the business school, they headed for the double-wide trailer that housed Stanford's Hasso Plattner Institute of Design, dubbed the "D-school" on campus. The course was team-taught by Stanford profs and industry professionals. Each student worked in a team that included a B-schooler, a computer science major, and a product designer. And each team used design thinking to shape a business plan for Mozilla.

It made a big difference. A B-school class would have started with a focus on market size and used financial analysis to understand it. This D-school class began with consumers and used ethnography, the latest management tool, to learn about them. Business school students would have developed a single new product to sell. The D-schoolers aimed at creating a prototype with possible features that might appeal to consumers. B-school students would have stopped when they completed the first good product idea. The D-schoolers went back again and again to come up with a panoply of possible winners.

This is a great overview of both the class we taught and the philosophy behind it.  There's a big difference between knowing how to analyze a business situation versus knowing how to create and execute on a business innovation problem.  For more on what we did in the class, here's a post I wrote earlier this year, and best of all is this post by Bob Sutton, which rightfully celebrates the students from the class. 

One thing I'd like to make clear is that I'm not anti-MBA.  Far from it.  I value my management education a great deal, and believe that an MBA provides individuals with very useful set of analytical tools, as well as the ability to thin-slice most business situations.  However, I do think that the typical MBA program is mostly focused on becoming a master of business-as-usual, which is a critical body of knowledge when it comes to running a profitable organization.  One way (and the best way, I believe) to learn how to engage in innovative behavior is to become a master of business-by-design, and that's what we're doing in our Business + Design classes at the Stanford d.school.  Organizations need to know how to do both.  And those organizations need doers and innovators who can bridge the worlds of business-as-usual and business-by-design.

21 Dysfunctional Definitions

Dictionary

Dysfunctional Definitions

  1. Agile- Approach that jumps through hoops to avoid providing a project forecast.
  2. Broken Windows- What over-worked developers create when driving through the code-base late at night.
  3. Business Analyst- Person who sweeps problems back out from under the rug for their customer.
  4. Deliverable- A measurable output of work, completed after the scheduled date.
  5. Developer- Person who creates solutions to unidentified problems.
  6. Innovation- What happens when managers fail to do their jobs correctly.
  7. Intellectual Property- Secret Sauce. Used to achieve the impossible. Alternately, used to prevent other companies from achieving the valuable.
  8. Iron Triangle- The rationalizing tool for reducing quality to meet the schedule.
  9. Meeting- An opportunity to stop all useful work and take a break. Effectiveness is proportional to the number of attendees.
  10. Offshoring- Going to the ends of the earth to help the developers, then finding their replacements there. (IP “borrowed” from Dispair, Inc)
  11. Product Manager- Person who identifies problems that apply to all customers except yours.
  12. Quality- The feng shui of software.
  13. Review- A meeting where all previous work is discarded and new work is defined. Followed invariably by another review.
  14. Rework- Replacing broken windows (see Broken Windows)
  15. Risk- A means by which reality is infused into projects.
  16. Schedule- A perfect prediction of the future and all project events. Schedules never change.
  17. Scope Creep- Theoretical event that my friend’s brother’s cousin’s neighbor once heard about happening on a big project.
  18. Software Salesman- Person who reserves weekday tee-times for CIOs and purchasing managers.
  19. Status Report- A transmogrification of reality to conform to the schedule (see Schedule).
  20. Timebox- A five gallon hat, into which ten gallons of work must be stuffed.
  21. Waterfall- Approach that maximizes the ability to plan to fail to deliver the right software.

More

Add to the list or provide alternate definitions in the comments below!

Innovation from Spain's Rioja wine region

Hotel%20Marques%20De%20Riscal.jpg

Here's the latest for international wine enthusiasts: a new $100 million Frank Gehry-designed hotel in the medieval village of Elciego. The hotel is located right smack in the middle of Spain's Rioja wine region and is attached to a local winery dating back to 1858, meaning that guests will have the run of the local vineyard - as well as access to an ancient wine cellar and a wine tasting corner and the opportunity to partake of "wine therapy" massages.

If the building looks familiar, it should - it's from the same celebrity architect who designed Spain's Bilbao museum. According to Alejandro Aznar Sainz, the head of the Marques de Riscal winery, the goal was to build a "21st-century chateau" that fused the best elements of modern innovation and Old World charm. The bigger picture, of course, is that the new Frank Gehry-designed hotel will likely provide a boost to the Spanish tourism industry and stoke demand for locally-produced Spanish wines.

[image: Hotel Marques De Riscal]

China looks to develop its innovation potential

China%20Internet%20cafe.jpg

In the Financial Times, Mure Dickie recently highlighted the new emphasis on innovation within China. Dogged by fears that the country still lags far behind its Western competitors, the Chinese government has worked to jump-start homegrown innovation:

"There is no questioning Beijing’s determination to change the situation. This year, perhaps the hottest phrase in technology policymaking is zizhu chuangxin, or “autonomous innovation”. Leaders are prepared to spend serious sums to boost scientific and technological research, budgeting a reported Rmb72bn in state investment for 2006, up by nearly a fifth compared with last year.
The latest five-year plan puts high emphasis on promoting R&D by domestic companies and supporting them in sectors seen as strategic, such as software. A package of policy measures to support domestic semiconductor companies is expected before the end of the year, with financial support for chip companies, public funding for some of their R&D, and wider use of income tax exemptions. City authorities already offer hefty incentives for chip fabrication plant investors – even in dry and dusty Beijing, which has little need of more water-hungry and dirt-sensitive plants.
The government is putting great effort into persuading local companies of the value of developing their own intellectual property in a country where copying is generally seen as more likely to be lucrative than creating. Beijing must be one of the few cities in the world that has advertising posters on its subway dedicated to encouraging patent filings."

[image: Chinese Internet cafe]

World peace and disruptive innovation



The Nobel Peace Prize was awarded to Muhammad Yunus and his microcredit institution, Grameen Bank, today, validating the notion that disruptive innovation can be a powerful driver of peaceful, harmonious development. Disruptive innovations often democratize or decentralize a traditionally restricted product or service, enabling mass consumption. This is of course an opportunity for companies looking to create new growth, but in many cases it can also be a liberating force for underserved segments of society, enabling radically new access to the tools and levers of the modern economy.

Yunus’ microcredit scheme – which is spreading from his native Bangledash across the d