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December 25, 2006

Become the thing that replaces you

Treevforest

I asked Little Miss MySpace what happens when something new comes along... when someone else makes a MySpace-Killer. Skyler said, "Why does it have to be someone else? MySpace can just become that (whatever 'that' is)." She knows nothing of the business or politics of MySpace--she's simply a passionate user. And she's never read The Innovator's Dilemma. But she still has a point: why shouldn't we be the ones to build our own "killer"?

Whether we're trying to innovate around our existing products and services or trying to find a completely new idea, we have to back up to the meta-level rather than focus on implementation. Obviously implementation matters... a lot. But implementation of what? Why build a better XYZ if all that matters to users is the Z? What if XYZ is just one way to give users what they really want--JKL--and there's actually a much better way to help them do JKL? A way that makes XYZ unnecessary?

If we're not careful, we can take our existing success and misattribute it to an implementation detail that was never important.

Or worse... we can misattribute our success to something that's actually a problem but that users managed to cope with. Right up to the time we upgraded that thing-they-never-liked to give it a bigger role.

Yes, this is just another one more of those DUH topics, but as with so many others--it's too easy to get sidetracked by either our own success or the success of someone else's product or service that we're trying to build a better version of. And that's one reason why trying to reverse-engineer the success of a product is tricky. We get stuck rationalizing why some implementation detail is important, when it may be nothing more than noise.

An example of outstanding implementation that ignored the meta-level

The now-dead Purple Moon software company was the result of millions of dollars and years of research at Paul Allen's Interval Research think tank. They had finally found the secret sauce to getting girls--the great untapped market--into gaming. By the time the company's first product launched (1997), they knew just about everything you could know about what young (10-14 years) girls wanted and how they differed from boys. So they took their exhaustive and expensive research effort and created the ultimate implementation.

The implementation was awesome... beautiful graphics, clever characters and story, slick marketing, and a world-class leader who many of us still practically worship, Brenda Laurel. If anythng could finally bring girls to the games, it would be the perfectly-pedigreed Purple Moon's first game, Rockett's New School.

Except it sucked.

At the meta-level.

Because what is the meta-level for a game? Oh yes, fun. Purple Moon got the individual implementation details right, and applied all that they'd learned from the research, but forgot the forest. Fun.

Skyler was an early beta-tester, and had been looking forward to the game I'd been hyping for so long. But the first thing she said when she read the overview document was, "Why would I want to play a game about a girl trying to fit into a new school? HELLO! I've DONE that in real life and it wasn't fun then. I'd rather play Blobbo."

[Warning: gratuitous kid photo... this is Skyler today]

Skyler2006
[Fortunately, she reads this blog only twice a year--she'd kill me if she knew I posted this. Let's just keep it our little secret.]


Granted, Skyler wasn't the typical pre-teen. She didn't do Barbie. (She would have given a kidney for her My Little Pony collection, however). But still, when you strip away Purple Moon's research and implementation details, Occam's Razor applies: Just. Wasn't. Fun.

With our books, that meta-thing is learning. And if we get off track by focusing on and EQ'ing our implementation details without remembering that, we're sunk. So if we try to figure out our own "killer", we'll do it only by staying true to the meta-level forest.

Many of us are creating products or services where the barrier to entry for a competitor is not all that high. The only thing we have to really protect us is a willingness to throw out even our most successful products in order to build a better reflection of what matters to users at the meta-level. And that might look nothing like our current, successful product. Keeping focused on meta-levels is also the key to avoiding being trapped by fads or fashion. Fads and fashion ("rounded", "glossy", "extreme", "twittery" [sorry, couldn't resist ; ) ] tend to be implementation details, not meta-level concepts ("have fun", "kick ass", "be smarter", "have more time in flow", etc.)

Finding the meta-level

The best trick we know for finding the meta-level is to play the five-why's / why-who-cares-so-what game. Ask your users (or even just yourself) what's important about a product. When they answer, ask, "Why?" When they answer that, say, "So?" and when they answer that, say, "Who cares?" and keep going until you get to the heart of it. (And if you haven't played this before, most people stop WAY too early and miss what matters the most.) Only then do you discover that this feature the users--and you--believed to be meaningful was simply a tolerable way to do what they really wanted. When they say that X is important, dig deep enough and you might find that it was only because X let them do Z, and that there's a much better way to make that happen.

Again, I know we all know this. But it's so hard to do, and the more successful your product or service, the harder it becomes. "Don't mess with success" is often the biggest barrier to becoming your own "killer".

A prominent tech book author wrote on a public forum, "Your Head First books will be fine just until the next hot new thing comes along to replace it." I said, "Yes, and that's why I want to be the one to replace it."

The link between innovation and manufacturing

An article in today's New York Times reports on arguments about the link between innovation and manufacturing:

Import penetration, as it is called, worried economists and policymakers when it first became noticeable 20 years ago. Many considered factory production a crucial component of the nation’s wealth and power. As imports gained ground, however, that view changed; the experts shifted the emphasis from production to design and innovation. Let others produce what Americans think up.

Or as Mark Zandi, chief economist at Moody’s Economy.com, put it: “We want people who can design iPods, not make them.” ...

But over the long run, can invention and design be separated from production? That question is rarely asked today. The debate instead centers on the loss of well-paying factory jobs and on the swelling trade deficit in manufactured goods. When the linkage does come up, the answer is surprisingly affirmative: Yes, invention and production are intertwined.

“Most innovation does not come from some disembodied laboratory,” said Stephen S. Cohen, co-director of the Berkeley Roundtable on the International Economy at the University of California, Berkeley. “In order to innovate in what you make, you have to be pretty good at making it — and we are losing that ability.”...

Alan Tonelson, a research fellow at the United States Business and Industry Council, argues that in this country, import penetration is rising faster in core industries like machine-tool building than it is in other countries. And these are the industries that are, or should be, centers of innovation and invention.

As I've argued before, Silicon Valley's greatness is based on a wellspring of manufacturing genius: Christophe Lecuyer contends in his book Making Silicon Valley that growing a native base of manufacturing intelligence was important to the Valley's rise than having lots of Ph.D.s.

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Homemade Windmill Powers African Home

Homemadewindmillafrica

That William Kamkwamba built a windmill from scratch might not be impressive, had he done so after a trip to Home Depot with the ol' AMEX card. That he did so in the Malawian outback, for $16 in cash, using discarded parts and learning engineering by trial an error, is an awesome accomplishment.

The completed mill generates enough power to save his family money on home lighting, phone charging and batteries. The design uses a system of pulleys to make generation more efficient than a simple turbine, one of which can be hooked up to a bicycle to add human-power to the mix when needed.

Imagine if mass-production of such mills could be accomplished for $16 a shot. If it's good enough for London, why not every (windy) rooftop in Africa, or, indeed, the world?

Homemade Windmill in Malawi [AfriGadget]

History of tape

People who are into “duct tape” (like me) must have a look at this history of tape published by Ambidextrous (by Jonathan Edelman). It provides a very curious timeline that starts from “Earthenware pots mended with an adhesive substance made from the sap of trees” to Johnson and Johnson or 3M inventions. Fish-based glue as well as many patents issued for glues using fish, animal bones, milk, rubber, and starch are presented.

It’s hard to imagine a world without tape. It mends our precious keepsakes, holds parts together as a quick repair, keeps our wounds together—and sometimes saves lives. The film industry is a virtual slave to tape: gaffer’s tape, paper tape, camera tape. Supposedly Socrates used an animal hide with some kind of sap to repair a hole in his home. We at least know that before tape, there was glue, fabric, paper, animal skins, and string; when tape came on the scene, everything changed. This timeline puts into perspective how tape has changed the very nature of adhesion and, along with it, designers’ manipulation of the world.

Why do I blog this? duct tape is a very intriguing innovation. As a user experience researcher, duct tape always makes me wonder about how people tune, tinker, craft, modify artifacts. It’s not only an indicator of situations that should or have been tuned but also a a superb example of a way to let people create “stuff” (see this book:“Tape: An Excursion Through the World of Adhesive Tapes” by Kerstin Finger)

Sincerely, look at your environment, try to find where people leave duct tape.

The Innovation Index

BusinessWeek along with the Boston Consulting Group surveyed and ranked the top 25 Innovative companies in the world for 2006 and 2005. I have compiled the list of the top Innovators in North America for the past two years based on BusinessWeek's survey of over 1,000 senior executives in 63 countries. This list only includes the North American companies that are publicly traded.

Introducing The Innovation Index

The Innovation Index is a compilation of the top 18 Innovators in North America. Most of these Innovators are prestigious companies including GE, 3M, HP, IBM, and Proctor & Gamble who have created numerous innovations and shaped our lives over the past fifty plus years; some leaders are better known by their innovative product brands - Blackberry by Research In Motion, iPod and iMac by Apple, online shopping by Amazon.com, Windows and Office by Microsoft, Microprocessor powered by Intel; the list also includes leaders whose creativity and brands have become synonymous to markets: networks by Cisco, computers by Dell, marketplace of traders by eBay, hot coffee and cappuccino by Starbucks, fashionable clothing by Target, lowest price shopping by Wal-Mart, low airline fares by Southwest Airlines, and search nirvana by Google.

The alphabetical list of the top 18 Innovators of The Innovation Index along with their stock ticker symbols are presented below:

3M Company - MMM
Amazon.com, Inc. - AMZN
Apple Computer, Inc. - AAPL
Cisco Systems, Inc. - CSCO
Dell Inc. - DELL
eBay Inc. - EBAY
General Electric Co. - GE
Google Inc. - GOOG
Hewlett-Packard Co. - HPQ
Intel Corporation - INTC
International Business Machines Corp. - IBM
Microsoft Corporation - MSFT
Research In Motion Limited - RIMM
Southwest Airlines Co. - LUV
Starbucks Corporation - SBUX
Target Corp. - TGT
The Proctor & Gamble Company - PG
Wal-Mart Stores, Inc. - WMT

The Innovation Index Report will incorporate the following objectives and will be released weekly:

1. Report, analyze and project the stock performance of the top 18 Innovators in North America every week, and compare their performance to S&P, NASDAQ and Dow Jones.

2. Compare and contrast best practices, initiatives, new products, successes, strategies, stories, leadership and insights on Creativity and Innovation at the top 18 Innovators.

3. Showcase Disruptors challenging these top Innovators, their disruptive innovation strategy, and their current and potential impact on the Innovators' customer base and market share.

A potential "The Disruption Index" could also arise once the market of Disruptors grows, and they become identified and accounted for. For example, The Disruption Index could include Juniper Networks and highlights about how it is disrupting Cisco Systems, Advanced Micro Devices' and its challenge versus Intel, and Yahoo!, the once crowned Internet Innovation King now in a Disruptor's role vis-à-vis Google.

How are the Top Innovators performing?

In one word: Surprising. (click on the image to obtain a larger view of The Innovation Index) The number one Innovator by stock performance this year is not Google, nor Apple - the top two innovators in the world. Rather it is an Innovator that knows a thing or two about causing disruption in the business segment of mobile devices by its ubiquitous wireless email service: Research In Motion - RIMM. The Blackberry, called "crackberry" by its cult-like business users who are so hooked on the e-mail that they can't even go to sleep without it being on, has fundamentally changed how the business world communicates via wireless email with total ease and security. What is also surprising is eBay (EBAY), the darling of the Internet boom, is showing the highest negative return so far this year out of the top 18 Innovators. eBay is sure to answer back next year with a host of new planned innovations. Cisco Systems (CSCO) is on the rebound this year notching gains over 50% for the year; bell-weather, Hewlett Packard, is also showing impressive gains of about 40% for the year. Are they innovating and executing better this year? Dell (DELL), Intel (INTC) and Amazon.com (AMZN) are all showing double-digit negative returns for the year. Are Disruptors challenging their leadership positions? Would they be around as Innovators next year in the index?

Overall, The Innovation Index shows a solid return of 14% for the year, beating the S & P 500 and NASDAQ, and in a virtual tie with the Dow Jones Industrial Index average. The Innovation Index is currently at 75.61 points, up 9.03 points for the year. Only 5 out of 18 companies in The Innovation Index are showing negative returns. Seven Innovators are showing double-digit returns; while the venerable companies including GE, Wal-Mart and 3M are showing less than 5% return – I will be exploring under the hood as to why this is the case. I believe though that in the longer term, in as much as the index continues to include the most innovative companies in the world founded on creativity and ingenuity driving business innovation, The Innovation Index will outperform the respective market indices. On the other hand, The Disruption Index could be even more spectacular in annual returns owing to smaller yet high growth companies carving out significant market share.

For now, watch this blog for updates on The Innovation Index, the top 18 Innovators in action, and their Disruptors in hot pursuit.

References:

BusinessWeek: The World’s Top 25 Most Innovative Companies

December 22, 2006

Brilliant minds forecast the next 50 years of science

benoit_mandelbrot.jpgBoingBoing points to a fascinating feature in the New Scientist, in which more than 70 of the most brilliant scientists in the world weigh in on what the next fifty years might hold for the future of science. Contributors such as Paul Davies, Francis Collins, Benoit Mandelbrot, Jane Goodall, Susan Greenfield, Dan Dennett and Steven Weinberg touch on everything from aging and alien life to neuroscience and space technology:

"In coming decades will we: discover that we are not alone in the universe? Unravel the physiological basis for consciousness? Routinely have false memories implanted in our minds? Begin to evolve in new directions? And will physicists finally hit upon a universal theory of everything? In fact, if the revelations of the last 50 years are anything to go on - the internet and the human genome for example - we probably have not even thought up the exciting advances that lay ahead of us.

[image: Benoit Mandelbrot]

In Finland, frustration with modern innovation

mobile%20phone%20tosser.jpgA big hat tip to Lassi Etelaetalo of Finland, who won the World Mobile Phone Throwing Championships in Finland by tossing his handset 89 meters (97 yards). For those of you keeping score at home, the world record for mobile phone tossing is 94.97 meters, set in 2005. Anyway, this kind of event - offering participants the opportunity to vent their frustration with modern technology - is apparently becoming quite the international rage:

"Phone throwers can compete in the "original" category, a straight over-arm pitch where length is the main factor, and in "freestyle," where points are also given for style, costume and character, as well as general sobriety. (emphasis added) Organisers say the event is "the only sport where you can pay back all the frustration and disappointments caused by this modern equipment." Numerous countries now organise national events but at this year's world championship the large majority of competitors were Finns, apart from a few from Belgium, the Netherlands and Sweden."

Anyway, as Reuters points out, "the inventive Finns had already given the world the Sauna World Championships and the Wife Carrying Competition before coming up with a new way to make mobile phones even more mobile."

Tags:

[image: Yahoo! News]

"More Innovation Please" - Marketing

Innovation is nothing more than unique solutions to problems. The catch is that in order to develop the solution you must understand the problem.

Not understanding the problem can lead to Innovating for Innovation’s sake; and that is simply an exercise in corporate entertainment. For example, a friend of mine is being asked to head an Innovation team at a Fortune 500 company. It seems that marketing has come to product development and asked for some more Innovative products. Not a novel approach to ship the product. Not a novel way to use the product differently. Just a simply request for more Innovative products. The problem, as marketing is defining it, is that there are not enough Innovative products to sell.

By failing to identify a specific customer problem to solve what marketing is really doing is asking for hirer margin products to sell to the existing client base. They ask for this because they are responsible for generating more profit and they think that the best (easiest?) way to do this is to sell higher margin products to the folks that they already know.

There is only one flaw in this line of reasoning and it’s that the customer does not care about marketing not having enough cool products to sell. The customer cares about their own problems.

By ignoring the customer what you end up generating is a bunch of me too products that best meet the needs of the company – higher margin, existing supply chain, existing client base, existing manufacturing base – but not the customer. And by ignoring the customer you ensure that the customer will ignore you, leaving you with nothing to show for the Innovation effort.

Who's afraid of a little ol' meme?

Memetic%20Hazard.jpgOn Flickr, Arenamontanus has posted a photoset of 19 warning signs from the future, including a few personal favorites, like Memetic Hazard. Memes, of course, were first written about by Richard Dawkins in his breakthrough 1976 book The Selfish Gene: "The term meme... refers to a unit of cultural information transferrable from one mind to another. Examples of memes are tunes, catch-phrases, clothes fashions, ways of making pots or of building arches. A meme propagates itself as a unit of cultural evolution — analogous in many ways to the behavior of the gene (the unit of genetic information)."

With this as context, I suppose you can interpret the black lightbulb in various ways, perhaps as a warning that particularly powerful ideas and thoughts have the potential to be passed on to others in the immediate area. Or, the sign might be a warning about memetic drift (the tendency for memes to mutate as they propagate from person to person), memetic inertia (the tendency for memes to propagate in coordination with particularly annoying mnemonic devices), or even memetic association (the tendency for memes to herd together).

[image: Memetic Hazard]

Self reflection: A key to personal innovation

According to Kevin Eikenberry, author of The Sideroad Blog, we're all so addicted to busy-ness that we don't leave enough time for reflection. Reflection, simply stated, is thinking about what you'd do differently or better next time, or how you could improve your performance of a sport or your job. It's an opportunity to think broadly and creatively. But it requires quiet time.

December 20, 2006

By 2026, your entire life will be stored on a sugar cube chip

Tom%20Cruise%20in%20Minority%20Report.jpg

As computing power continues to grow, it will be theoretically possible to record and store high-resolution video footage of every second of a human life on a device the size of a sugar cube within the next two decades. However, with great power comes great responsibility:

"Researchers said governments and societies must urgently debate the implications of the huge increases in computing power and the growing mass of information being collected on individuals. Some fear that the advent of "human black boxes" combined with the extension of medical, financial and other digital records will lead to loss of privacy and a dramatic expansion of the nanny state. Others highlight positive advances in medicine, education, crime prevention and the way history will be recorded."

These issues and others were discussed by leading computer scientists, psychologists and neuroscientists at the Memories for Life conference held at the British Library in London.

[image: Tom Cruise in Minority Report]

10 ways marketing will be transformed in 2007

Via Bob Liodice on the ANA blog:

  1. Consumer in Control: Marketers will abandon their historic ‘command and control’ model of brand building in favor of a truly interactive dialogue with consumers
  2. New Agenda for Agencies: Agencies will be turned on their heads, with their efforts increasingly tied to client brand performance.
  3. Hail to the Chief: The chief marketing officer will rise in stature as a C-suite player...
  4. Unconventional Outreach: Marketing will become increasingly unconventional – tapping into social networking, word-of-mouth, local events and more...
  5. Media Buying Metamorphosis: Media buying and selling will be transformed.
  6. Let the Fighting End: Government policymakers, consumer advocacy groups and brand marketers will begin to find common ground, aligning business goals with public policy needs.
  7. Organizational Overhaul: The marketing organization will undergo a top-to-bottom reinvention, providing better professional education and skill-building...
  8. Research Renewal: Research will become the next frontier in the accountability equation.
  9. Blow up the Back Room: Archaic business systems and back office operations will be overhauled to lower costs...
  10. Continuous Marketing Reinvention: Continuous marketing reinvention will become the mantra of marketing executives and the cornerstone philosophy for successful brand building, integrated marketing communications, marketing accountability and the marketing organization.

Bob's 10-step program of progress truly validates the new and pretty scary path we've set out on with the formation and launch of crayon. It also underscores the mountain that still has to be climbed.

There is a still a massive disconnect between "what we say" as an industry and "what we do." The rhetoric is deafening and there is an abundance of "change is good, but not on my watch" which makes for a sobering inhibitor of innovation and progress.

Take point number 3: the rise of the CMO for example. It's going to take a lot more than a title or keynote speech at a AAAA's or ANA event to demonstrate that the CMO title is nothing more than a glorified or token figurehead. Along with this leadership position has got to be a degree of empowerment and budget autonomy. Put differently, in order to leverage the full power and potential of the C-level marketing position (which I think is beyond critical), point 7 - i.e. organizational overhaul - is going to need to be simultaneously and comprehensively implemented.

My hope is that at this time next year, we'll be looking at a self-reported progress card which glows with achievement and accomplishment.

Perhaps next year will be different...

Innovation Short Cuts

While I rarely advocate for short cuts, I think there are five or six attributes of a business that can propel it toward becoming a truly innovative firm. If you are in a rush to become more innovative in your business, adopt these concepts:

- Get top management on board and have them advocate regularly the importance of innovation,
even at the expense of short term results

- Welcome ideas from any part of the organization and demonstrate the ability to frame
problems and indicate which ideas are useful. Provide feedback to submitters

- Define a process for capturing, managing and evaluating ideas that is well-understood and
repeatable

- Encourage as much interaction and feedback on an idea as possible. Experiment and
question an idea thoroughly prior to launch

- Prototype early and often

- Seek as much information about the market as possible. Learn to be able to accept qualitative
inputs as well as you accept quantitative. The future can't be measured yet.

- Have your best people work on innovation. Raise the compensation and motivation on
innovation and eliminate the fear of failure

- Treat innovation like an investment portfolio. Nurture some incremental innovations that
pay off in the short run and some risky innovations with a big potential long term payoff.

OK - so in hindsight there really aren't any shortcuts. Doing any one of these things is a good first step, but to quote James Baker, this isn't a fruit salad. You can't say I'd like a little more prototyping but I don't want to impact compensation. To be effective at innovation in the long run, you need to implement all of these suggestions. Fortunately you don't have to do them all at once.

Do we need a new language of innovation?

Imitate%20the%20native%20speaker%202.jpgAs part of a series of "Innovation Wednesday" blog posts about innovation, Yvonne DiVita of the Lipsticking blog suggests that the current way of discussing and thinking about innovation is no longer practical or sufficient. What corporations need is a new language of innovation:

"Something that really struck me about the Fortune Innovation Forum was the "language of innovation." Will Edwards of Advanced Micro Systems spoke of the language, and how it's one way you can get off track. His exact words were, "Language can kill you. You need to create a new vocabulary." To that, I say, "Hear, hear!" [...]
"We need a new way to approach this. To discuss this. To talk innovation. Using the tired old words of the last century doesn't do it." Yes, they are reflective of innovation - the kind of activity described here and throughout both the Fortune Innovation Forum and the Business Innovation Insider blog but...but...but...they don't do the concept justice. And, they don't being to reflect or describe what innovation in a world of community participation really is.
So, the challenge, as I see it - is as much about the language of innovation, as it is about innovation itself. We live in a world that depends on communication - on the ability to share stories and experiences and to have the person you're speaking with actually understand what you're talking about..."

With that in mind, Yvonne proposes a brand new group of words to describe and characterize innovation within organizations:

* Creativeship
* Bold Maneuvers
* Gigantic Thought
* Anti-management
* Harmonic dissodance
* Musical stories
* The color of magic
* The sound of creation
* Grasping the invisible

[image: Imitate the Native Speaker]

December 17, 2006

A hunger for innovation

Dublin%20Potato%20Famine%20Memorial.jpg

If you want to make your workers more innovative, try starving 'em. Or, at least, make them really, really hungry. That's the conclusion of a new report from a team of researchers at Yale Medical School:

"Hunger makes the best sauce, goes the maxim. According to researchers at Yale Medical School, it may make quadratic equations and Kant’s categorical imperative go down easier too. The stimulation of hunger, the researchers announced in the March issue of Nature Neuroscience, causes mice to take in information more quickly, and to retain it better — basically, it makes them smarter. And that’s very likely to be true for humans as well.
A team led by Tamas Horvath, chairman of Yale’s comparative medicine program, had been analyzing the pathways followed in mouse brains by ghrelin, a hormone produced by the stomach lining, when the stomach is empty. To the scientists’ surprise, they found that ghrelin was binding to cells not just in the primitive part of the brain that registers hunger (the hypothalamus) but also in the region that plays a role in learning, memory and spatial analysis (the hippocampus)."

[image: Dublin's Potato Famine Memorial]

New Zealand Government Plan to Influence Consumer Behaviour

The New Zealand Government has embarked on a 'Buy New Zealand Made Campaign'. The Government is going to promote a 'Buy New Zealand Made' message to New Zealand consumers.

I think there is a case for food and other such primary products that are made locally. It would make sense from a environment and sustainable perspective to strike a better balance between exporting products, and having to import the same type of products from other countries to address the shortfall in local demand. However, for a whole lot of other reasons it seems like a misguided intiative.

The big problem I have with 'Buy New Zealand Made':

It is at odds with initiatives from the Goverments Growth and Innovation policy which is all about global connectedness and export growth. Initiatives such as Better by Design aimed at helping NZ companies become more internationally competitive.

It seems totally wrong in times when collaboration and alliances with other nations are so necessary for NZ businesses to produce world class products (and 'services'!!). Especially since we rely on technology, resources and know-how from other nations to remain a relevant and competitive nation. And if NZ businesses are trying to be globally relevant and competitive, what do they aspire too?

New Zealand companies have to export to grow. So NZ relies on other nations to accept New Zealand products. The initiative doesn't support a good position and competitve attitude towards global commerce.

It is so product centric (made, making, manufactured). With the big shift to the service economies in most successful economies it could be promoting something much more worthwhile.

Top 10 Secrets of the Marketing Process

If my previous post confused you, it's because of the difference between tactics and innovation. Try these 10 ideas to get you started down the path of scientific marketing tactics:

1. Don’t run out of money. It always takes longer and costs more than you expect to spread your idea. You can budget for it or you can fail.

2. You won’t get it right the first time.
Your campaign will need to be reinvented, adjusted or scrapped. Count on it.

3. Convenient choices are not often the best choices. Just because an agency, an asset or a bizdev deal are easy to do doesn’t mean that they are your best choice.

4. Irrational, strongly held beliefs of close advisors should be ignored.
It doesn’t matter if they don’t like your logo.

5. If it makes you nervous, it’s probably a good idea.
If you’re sure you’re right, you probably aren’t.

6. Focusing obsessively on one niche, one feature and one market is almost always a better idea than trying to satisfy everyone.

7. At some point, you’re either going to have to stick to your convictions or do what the market tells you. It’s hard to do both.

8. Compromise in marketing is almost always a bad idea.
Extreme A could work. Extreme B could work. The average of A and B will almost never work.

9. Test, measure and optimize. Figure out what's working and do it more.

10. Read and learn.
There are a million clues, case studies, books and proven tactics out there. You can't profitably ignore them until you know them, and you don't have the time or the money to make the same mistake someone else made last week. It's cheaper and faster to read about it than it is to do it.

Title mania

The NYT has a piece about title-mania and what it might mean:

“group idea management director”? / “chief transformation officer” / “marketing evangelist” / “chief consumer officer” / “vice president for stakeholder relations”
(…)
Experts say the unconventional titles are intended to signal a realization by an advertiser or agency that in a rapidly changing marketing and media landscape, the time for the tried and true has come and gone. The titles serve the same purpose, in other words, as an agency announcing that it is opening a division specializing in e-mail marketing, getting into the field of branded entertainment or starting a blog. “The agency is saying: ‘We are contemporary. We get it,’ ” said Susan Friedman
(…)
The dot-com bust deflated some of the zest for nontraditional titles, but the ferment in the new-media field in the last year or two seems to have revived it.

The title trend is gaining popularity at the same time as the practice of giving agencies unusual names, to let potential clients know they take an unconventional approach to advertising. Some examples include Amalgamated, Anomaly, Droga5, Mother, Naked, Nitro, StrawberryFrog, Taxi and Zig.

“It’s a screening device,”

Why do I blog this? I am not that into unconventional titles (even thought I don’t what can be my title judging my fuzzy hats) but I find the trend intriguing; it might reveal some more serious phenomenon.

Off the Grid Innovation

It's almost time for the holiday ski season to start here on the East Coast, and my thoughts naturally turned to Warren Miller, considered by many to be one of the greatest innovators in the ski industry. Over at the Warren Miller Entertainment site, there's a four-minute video trailer for his new movie ("Off the Grid") which features a number of great quotes from skiers about creativity, innovation and imagination (e.g. "People can be divided into three classes: the few who make things happen, the many who watch things happen, and the overwhelming majority who have no idea of what has happened") - as well as great clips of extreme skiing in out-of-the-way places like Kashmir.

So what was your best example of Off the Grid innovation in 2006?

[video: Off the Grid]

December 15, 2006

The MBA brand that means "innovation"

Haas%20School%20of%20Business%202.jpg

According to Ronald Alsop of the Wall Street Journal, the Haas School of Business at the University of California at Berkeley is attempting to market and brand itself as the Innovation MBA. The school has launched a major new strategic branding project with the theme Leading Through Innovation:

"After months of study, the school decided to stake its identity on grooming leaders who are innovative not just in developing new technologies and products, but also in "the organization of work, strategy, services, and business models." [...]
"We also thought hard about whether we could create enough new space with the word 'innovation,'" Dr. Lyons says, because the word has been used by the business schools at the University of Pennsylvania, MIT and Carnegie Mellon University. "But we ultimately decided that Leading Through Innovation worked remarkably well in conveying who we are."

In support of this "innovation brand," the B-school is overhauling its curriculum and even changing the type of students that it admits:

"Berkeley's Haas School believes its Leading Through Innovation slogan is already well supported by its strengths in technology and entrepreneurship and by its students' creativity. But it plans to put even more substance behind its new brand. Professors and industry experts are teaching seminars on innovation, and the curriculum includes new courses on leadership, managing innovation and change, and creativity and innovation in marketing and finance. Faculty members also are writing new case studies and articles for the California Management Review about leadership and innovation.
To attract the right kind of student, the Haas School has added a new essay question to its application that asks people to tell how they have demonstrated innovation and creativity in their professional or personal lives. "We're looking for intelligent students without arrogance, who can lead and manage in a changing environment," says Dean Tom Campbell. Haas School employees are expected to think more creatively, too. The performance evaluation for staff members includes a new section measuring how innovative they have been in the past year, and Haas has established a staff award to recognize innovation."

[image: Haas School of Business]

5 Myths of Consumer Behavior

I just finished Paul Allen Smethers and Alastair France's new book Five Myths of Consumer Behavior: Create Technology Products Consumers Will Love. It's been required reading at the office and for good reason. It's a superb book! Something every marketing student and product designer or engineer should pick up. [It also supports/echos some of what Jane ("the empathic economy"), Susan ("making customers happy") and Russell ("uncovering insights") touched on in their recent interviews here.]

At only 147 big-print pages it's a rather quick read but it packs a big punch and does a fine job at outlining core yet often overlooked consumer behaviour principles. In particular, Smethers articulately explains (in plain English) the various phases and stalling points of new product adoption, the barriers to initial use and proper usability, the different types of users and how to approach them, the many costs to the consumer and why it's so important to highlight a product's true value. Here are the five myths:

Myth 1: Consumers behave the same in all markets
Reality: Consumers behave differently in new markets than in established markets

Myth 2: The more consumers see it, the more successful it will be
Reality: If the offspring isn't attractive, there is no sense getting more users to see it

Myth 3: If I’ll use it, my users will
Reality: Consumers don't have your knowledge or your motivation when they try your product

Myth 4: Consumers will find a product’s value
Reality: The value must find the user

Myth 5: Consumers want more features
Reality: Consumers only want a few key features, and they want them to work well

The University of Colorado at Colorado Springs creates the Bachelor of Innovation program

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As much attention as innovation is attracting in the business world, it's perhaps not surprising that the world of academia is also re-thinking the importance of innovation and creativity within the curriculum. In one notable example, the University of Colorado at Colorado Springs recently announced the creation of the Bachelor of Innovation™ (BI) family of degrees. After debating which elements of engineering, entrepreneurship, business and law should be blended together to form the basis of an innovation academic program, the university finalized the creation of an "Innovation Core." This core has some unique aspects to it, including the use of long-term, multi-disciplinary teams working on real projects for companies; a course in proposal preparation and responding to RFPs; and an undergraduate law course with half of it dedicated to intellectual property issues.

The Bachelor of Innovation™ program is not a degree in innovation, it's actually a family of related majors (much like a Bachelor of Arts or Bachelor of Science) with a common core supporting a mix of degrees. The university currently offers 5 BI degrees and expects to add more soon. The core of the majors is the same (e.g. BI in Business and BI in EE have exactly the same required courses), only the electives are different.

[image: The Bachelor of Innovation]

Survey shows disconnect between importance of innovation & expertise in it

The Center for Creative Leadership recently surveyed the readers of its Leading Effectively e-newsletter about the importance of innovation in the workplace. Although 92 percent of respondents agreed that innovation is important to their success as a leader, not as many have actually done something about it: Lack of champions: Less than half of respondents (42%) agreed or strongly agreed that innovation has a champion in their organization. Senior managers don't understand innovation: Only 27% of respondents agreed or strongly agreed that senior managers in their organizations understand the essential principles for sustaining innovation. Lower level managers understand even less: Only 14% of respondents agreed or strongly agreed that lower-level managers understand the key principles for sustaining innovation. Lack of innovation process: Roughly two-thirds of respondents (65%) indicated that their organization doesn't have a formal innovation process.

Idea Seeding Better Than Brainstorming

acorn

Kevin Cheng and Tom Chi, at OK/Cancel have written an article sharing the creative process they use for creating their awesome strips. Idea seeding is the process where they use time constraints and design/refine cycles to improve their ability to create quality “product.” They also wonder about extending this approach to other areas where brainstorming is normally used.

OK/Cancel

Even if you aren’t interested in idea seeding, you need to check out OK/Cancel. Tom and Kevin are incredibly talented designers who run a popular website creating a great community focused on (software) interfaces and the people who create them. Their articles, cartoons, and the discussion threads are top shelf.

A recent favorite strip of mine shows whatmight be titled Project Managers Behaving Badly.

Brainstorming Out

Kevin details their old design process for creating new strips, which involved a 2 to 4 hour brainstorming session. While they met their quality goals for the strip (their product), they felt that the process was too time-intensive. Tom had used a process called “switch sessions” as part of collaborating on music, and they adapted that process for comic-strip development.

Idea Seeding In

Kevin thinks “Idea Seeding” is a better name for the process, which they detail as follows:

  • Constrained Idea Generation. Each person works independently for 30 minutes to document the ideas for four comic strips.
  • Edit And Refine. The collaborators swap strip ideas, and for 30 minutes, refine or complete the other person’s ideas.
  • Collaborate And Polish. In a final 30 minute session, they collaborate to discard, improve, and select the comics they’ve created.

Kevin and Tom express that this is working better for them than brainstorming did. As a “user” of their product, I would have to agree, at least on the quality of the strips - they are just as good or better than before. And the process is saving them a ton of time.

One of the many commenters expressed that this is just a variation of “individual brainstorming” which has been proven to be more effective. The commenter cites this study as evidence of the relative efficiencies. The study tested brainstorming results using 36 college students. In our earlier article about the Wall Street Journal’s coverage of similar brainstorming studies, we quoted Dr. Sutton as a detractor of these studies:

To put it another way, if these were studies of sexual performance, it would be like drawing inferences about what happens with experienced couples on the basis of research done only with virgins during the first time they had sex.

Bob Sutton

Why It Works

The compelling element isn’t the lack of collaboration in the first session, it is the artificial constraint placed on time. Kathy Sierra has written about exactly this effect here and here and here and probably more places. She shares fantastic insights about cognition in many of her posts.

The second session is really interesting in that it has a marked divergence from brainstorming. In brainstorming, one idea builds on another. In this refinement session, one idea improves another. Brainstorming doesn’t allow for negative feedback or other valuations of ideas during the gathering stage - ideas are prioritized at the end of the session. And those ideas are all “first generation” ideas. With an edit cycle, the original ideas are improved - which implies that their weaknesses are identified.

Better Than Brainstorming?

Certainly Kevin and Tom are happier with this approach than using brainstorming. And Kevin wonders if it can be applied to interface design (creating wireframes, etc).

Idea Seeding For Process Re-Engineering

One idea immediately jumped out for how to use this as a business analyst - process re-engineering. Process re-engineering requires both insight and out of the box thinking. It is both a creative and an analytical exercise. We could use the “three session” approach to achieve these goals.

We would also have the benefit of pre-seeding the process by leveraging documentation of existing processes. Using two business analysts, the 30 minute sessions might look like this:

  1. Each business analyst identifies four (or three?) process changes that might be valuable if they worked, and fleshes out the ideas as much as possible.
  2. The analysts swap changes-proposals. Each business analyst then works to refine the process changes from the first exercise.
  3. The two business analysts meet to review the results and determine which changes to combine, pursue, or discard.

Kevin mentioned that their process worked well because they had a low-overhead template that made it easy to record thoughts and ideas in various stages of completeness. We would need something similar for our process change exercise.

Idea Seeding for Requirements Gathering

Requirements gathering is more about discovery than refinement. The collaboration inherent in a brainstorming session should be more effective at discovery than idea seeding.

Conclusion

Idea Seeding works better for Tom and Kevin than brainstorming did - same or higher quality in less time. We can apply the same technique to process re-engineering, but probably not to requirements elicitation.

How to be better at almost anything

Glibwin2

Earlier we talked about why the fast-talking guy sounds smarter than the guy who understands more than he can say. We talked about how wrong that is, and how if the glib always win, we all lose. But the more important battle is not between articulate vs. less-articulate people... it's between the articulate vs. non-articulate parts of your own head. Your brain has both a quick-talker and a quick-thinker, but the good-talker "know-it-all" gets the glory. In other words, there's a smart part and a dumb part of your brain, and the problem is...the dumb part talks.

Glibbrain

If we can get the dumber part to STFU, we can learn much faster and perform much better at just about anything. The dumber chatty part is hurting us.

It's the part that makes you self-conscious:
"Do I look OK? Am I going to say something stupid?"
"Am I overlooking something in this code?"

It's the part that criticizes:
"DOH! I can't believe I just did that. Idiot!"
"This code is inefficient... you need to fix it."
"That paragraph reads like a six-year old wrote it. It's dull.

It's the part that gives you "helpful" instructions:
"Make eye contact for three seconds. Watch your posture, don't look at your slides."
"Look for a design pattern to apply. Don't duplicate that code over there."
"Stay close to the fall-line. Don't lock your knees. Turn quicker!"
"It's safer to use formal terminology than risk looking silly."

While your brain is chatting away evaluating, judging, instructing, criticizing, directing, etc... the smarter parts sit in the corner, ignored. Alan Kay--often called the father of object-oriented programming and one of the greatest thinkers/researchers/designers/teachers/engineers of our time-- talks about the implications of this for education... something we talked about earlier.

But Alan Kay was inspired by the work of Tim Gallwey, whose work arose from one simple question, "... is all this inner dialogue really necessary? Is it helping...or is it getting in the way?" Until I heard Alan Kay talk about it (and explain some of the cognitive science behind it), I had always thought Gallwey's "inner game" thing was just one more bit of 60's self-help new-age nonsense. I was dead wrong.

Gallwey showed that the parts of our brain that learn from experience are far more capable than the parts that learn from talking through it. We think we need to tell ourselves things like, "keep your weight over your front don't press so hard on the violin bow..." when we're trying to learn something new or improve our performance, when that's exactly the thing that inhibits learning and improvement.

We did learn to walk, after all. And we did it with virtually no explicit "talking" instruction. Nobody compared our first steps to the steps of an expert (i.e. a parent) and "told" us how to adjust. Nobody outside or inside our head was evaluating, judging, or correcting. Think about times when people are telling you what to do when you're trying to concentrate and you finally yell at them to STFU. All we need to do is take that attitude we have to people outside our head and apply it to the chattering inside our head.

Easier said than done, of course. Gallwey makes the point that most of us can't turn off the talking parts with brute force will, although that's the basis for so many ineffective self-help or creativity books that tell you to change the way you talk to yourself or "silence your inner critic" simply by telling yourself to do so. (pretty tough to tell yourself not to tell yourself...)

For Gallwey, the answer is focus of attention. In tennis, for example, he has people learn to focus on the ball--the seams turning, the way it bounces, and the moment at which someone hits it. Bounce-hit. Bounce-hit. Nothing about feet, arms, rackets, weight shifts. Nothing talking to--or about--you. (Yes, technically your brain is still 'talking' through this "here's the bounce, there's the hit, etc." but the point is that it's not annoying and influencing you.)


Example Techniques

* Art
Nobody does a better job of this than Drawing on the Right Side of the Brain, a program created by Betty Edwards. I'd recommend it to everyone whether you ever care about drawing or not, just for the way it changes your brain. Betty (and a zillion students) demonstrate that the part of your brain that talks is also the part that draws like a three-year old. That part talks its way through, say, what a car or horse or human looks like, and it does a really lame job. But if you get your brain to stop saying, "this is a horse, and they have four legs and..." and instead focus on seeing shapes and lines, the better-performing parts of your brain can kick in.

* Writing non-fiction
If you plan a book by making outlines, you're indulging the talking (linear, step-by-step, rational) part of your brain. The focus is on what you do and say and when and how you say it. With our books, we do not use outlines--we do everything from storyboards. By focusing on the story of the learner's journey, it keeps the brain focused on the learner's experience rather than what WE do/say/write. This is not a trivial thing--last week our books represented 25% of the O'Reilly Top 20 bestsellers. And we're not all that good at writing. It really is about focusing on the reader instead of focusing on what the reader will think of us.

* Design
Mind-mapping--if you do it quickly--stops the talking parts from jumping in and evaluating what you're writing, so the creative parts can do things. That's what makes mind-mapping so powerful and fun--after you're done, you look at the paper and find things you'd never thought about... things that wouldn't have come out while talking your way through an outline.

* Programming
Pay attention to Code Smells, which is another way of saying a gut "bad feeling" that tells you something is wrong even if you can't yet say why.

* Everything
Read Malcolm Gladwell's book Blink, which I talked about in this post. And while you're making sure that glib people don't always win, try to do the same within your own brain.

Listen to the comments of our readers, who I'm sure will have suggestions for other resources : )