Tag Archives: BusinessWeek

Innovation [22-09-2010]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

Innovation [2010-08-02]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

What is innovation?

What is innovation? I don’t know, but then I’m not even sure that it’s an interesting question. The yearning so many companies have to be innovative often seems to prevent them from actually doing anything innovative. They get so caught up in trying to come up with the next innovation — the next big product — that they often fail to do anything innovative at all. It’s more productive to define innovation by understanding what it’s not: doing the same thing as the rest of the crowd, while accepting that there are no silver bullets and that you don’t control all the variables.

So, what is innovation? This seems to be a common question thats comes up whenever a company wants to innovate. After all, the first step in solving a problem is usually to define our terms.

Innovation is a bit like quantum theory’s spooky action at a distance,1)Spooky action at a distance? @ Fact and Fiction where stuff we know and understand behaves in a way we don’t expect. It can be easy to spot an innovative outcome (hindsight is a wonderful thing), but it’s hard to predict what will be innovative in the future. Just spend some time browsing Paleo-Future2)Paleo-Future (one of my favourite blogs) to see just how far off the mark we’ve been in the past.

The problem is that as it’s all relative; what’s innovative in one context may (or may not) be innovative in another. You need an environment that brings together a confluence of factors — ideas, skills, the right business and market drivers, the time and space to try something new — before there’s a chance that something innovative might happen.

Unfortunately innovation has been claimed as the engine behind the success of more than a few leading companies, so we all wanted to know what it is (and how to get some). Many books have been written promising to tell you exactly what to do to create innovation, providing you with a twelve step program3)Twelve step programs @ Wikipedia to a happier and more innovative future. If you just do this, then you too can invent the next iPhone.4)iPhone — the Apple innovation everyone expected @ Fast Company

Initially we were told that we just needed to find the big idea, a concept which will form the basis of our industry shattering innovation. We hired consultants to run ideation5)Ideation defined at Wikipedia workshops for us, or even outsourced ideation to an innovation consultancy asking them to hunt down the big idea for us. A whole industry has sprung up around the quest for the big idea, with TED6)TED (which I have mixed feelings about) being the most obvious example.

As I’ve said before, the quest for the new-new thing is pointless.7)Innovation should not be the quest for the new-new thing @ PEG

The challenge when managing innovation is not in capturing ideas before they develop into market shaping innovations. If we see an innovative idea outside our organization, then we must assume that we’re not the first to see it, and ideas are easily copied. If innovation is a transferable good, then we’d all have the latest version.

Ideas are a dime a dozen, so real challenge is to execute on an idea (i.e. pick one and do something meaningful with it). If you get involved in that ideas arms race, then you will come last as someone will always have the idea before you. As Scott McNealy at Sun likes to say:

Statistically, most of the smart people work for somebody else.

More recently our focus has shifted from ideas to method. Realising that a good idea is not enough, we’ve tried to find a repeatable method with which we can manufacture innovation. This is what business does after all; formalise and systematise a skill, and then deploy it at huge scale to generate a profit. Think Henry Ford and the creation of that first production line.

Design Thinking8)Design Thinking … what is that? @ Fast Company is the most popular candidate for method of innovation, due largely to the role of Jonathan Ive9)Jonathan Ive @ Design Museum and design in Apple’s rise from also-ran to market leader. There’s a lot of good stuff in Design Thinking — concepts and practices anyone with an engineering background10)Sorry, software engineering doesn’t count. would recognise. Understand the context that your product or solution must work in. Build up the ideas used in your solution in an incremental and iterative fashion, testing and prototyping as you go. Teamwork and collaboration. And so on…

The fairly obvious problem with this is that Design Thinking does not guarantee an innovative outcome. For every Apple with their iPhone there’s an Apple with a Newton.11)The story behind the Apple Newton @ Gizmodo Or Microsoft with a Kin.12)Microsoft Said to Blame Low Sales, High Price for Kin’s Failure @ Business Week Or a host of other carefully designed and crafted products which failed to have any impact in the market. I’ll let the blog-sphere debate the precise reason for each failure, but we can’t escape the fact the best people with a perfect method cannot guarantee us success.

People make bad decisions. You might have followed the method correctly, but perhaps you didn’t quite identify the right target audience. Or the technology might not quite be where you need it to be. Or something a competitor did might render all your blood sweet and tears irrelevant.

Design Thinking (and innovation) is not chess: a game where all variables are known and we have complete information, allowing us to make perfect decisions. We can’t expect a method like Design Thinking to provide an innovative outcome.

Why then do we try and define innovation in terms of the big idea or perfect methodology? I put this down to the quest for a silver bullet: most people hope that there’s a magic cure for their problems which requires little effort to implement, and they dislike the notion that hard work is key.

This is true in many of life’s facets. We prefer diet pills and magic foods over exercise and eating less. If I pay for this, then it will all come good. If we just can just find that innovative idea in our next facilitated ideation workshop. Or hire more designers and implement Design Thinking across our organisation.

Success with innovation, as with so many things, is more a question of hard work than anything else. We forget that the person behind P&G’s Design Thinking efforts,13)P&G changes it’s game @ Business Week Cindy Tripp, came out of marketing and finance, not design. She chose Design Thinking as the right tool for the problems she needed to solve — Design Thinking didn’t choose her. And she worked hard, pulling in ideas from left, right and centre, to find, test and implement the tools she needed.

So innovation is not the big idea. Nor is it a process like Design Thinking.

For me, innovation is simply:

  • working toward a meaningful goal, and
  • being empower to use whichever tools will be most beneficial.

If I was to try and define innovation more formally, then I would say that innovation is a combination of two key concepts: obliquity14)Obliquity defined at SearchCRM and Jeet Kune Do’s15)Jeet Kune Do, a martial art discipline developed by Bruce Lee @ Wikipedia concept of absorbing what is useful.

Obliquity is the simple idea that the best way to achieve a goal in a complex environment is to take an indirect approach. The fastest and most productive path to the top of the mountain might be to take the path that winds its way around the mountain, rather than to try and walk directly up the steepest face.

Apple is a good example of obliquity in action. Both Steve Jobs and Jonathan Ives are on record as wanting to make “great products that we want to own ourselves,” rather than plotting to build the biggest and most innovative company on the planet. Rather than try and game the financial metrics, they are focusing on making great products.

Bruce Lee16)Bruce Lee: the devine wind came up with the idea of “absorbing what is useful”17)Absorbing what is useful @ Wikipedia when he created Jeet Kune Do. He promoted the idea that students should learn a range of methods and doctrines, experiment to learn what works (and what doesn’t work) for them, “absorb what is useful” while discarding the remainder. The critical point of this principle is that the choice of what to keep is based on personal experimentation. It is not based on how a technique may look or feel, or how precisely the artist can mimic tradition. In the final analysis, if the technique is not beneficial, it is discarded. Lee believed that only the individual could come to understand what worked; based on critical self analysis, and by, “honestly expressing oneself, without lying to oneself.”

Cindy Tripp at P&G is a good example of someone absorbing what is useful. Her career has her investigating different topics and domains, more a sun shaped individual than a t-shaped one.18)T-Shaped + Sun-Shaped People @ Logic + Emotion Starting from a core passion, she accreted a collection of disciplines, tools and techniques which are beneficial. Design Thinking is one of these techniques (which she uses as a reframing tool).

I suppose you could say that I’ve defined innovation by identifying what it’s not: innovation is the courage to find a different way up the hill, while accepting that there are no silver bullets and that you don’t control all the variables.

Updated: Tweeked the wording in the (lucky) 13th paragraph in line with Bill Buxton’s comment.

For every Apple with their iPhone there’s an Apple with a Newton. Or Microsoft with a Kin.

References   [ + ]

Innovation [2010-03-01]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

Innovation [2010-02-17]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

  • An innovation report card [The Conference Board of Canada]
    Countries with the highest overall scores not only spend more on science and technology but also have policies that drive innovation supply and demand.
  • Innovation: what’s your score? [McKinsey & Company: What Matters]
    Can companies measure the impact of their innovation activities? Can they benchmark their performance on innovation against that of their peers? Can the long-term effects of innovation strategies be tracked systematically? Yes, yes, and yes. In fact, not only can companies objectively assess innovation; we believe they must. Only then will they know how to select the right strategies and execute them well.
  • The Original Futurama: The Legacy of the 1939 World’s Fair [Popular Mechanics]
    Seventy years after the closing of the 1939 New York World’s Fair, The Daily Show writer Elliott Kalan looks back at its past vision of the World of Tomorrow.
  • Why private companies are more innovative [BusinessWeek: NEXT]
    Do privately held companies have an edge when it comes to long-term innovation? At least some of them seem to. Recently, Al Gore—former Vice-President and Senator and now Nobel Prize-winning environmental evangelist—declared S.C. Johnson & Son one of the most sustainable companies in the world.

Innovation [2010-01-04]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

  • Cisco’s Patent Strategy: It’s More Than Numbers [BusinessWeek: NEXT]
    Innovation—at least as measured by patents—seems to fading in the U.S. For the first time, moreover, foreigners obtained more patents than U.S. residents.
  • Technology First, Needs Last [jnd]
    Don Norman has come to an interesting conclusion: design research is great when it comes to improving existing product categories but essentially useless when it comes to new, innovative breakthroughs.
  • Boyer Lectures [Radio National]
    General Peter Cosgrove, AC MC (ret’d) presented the Boyer Lectures, from 8 November 2009, with his 40 years of military experience and service to Australia placing him in a unique position to talk about the challenges and opportunities faced by society today and into the future.
  • Head to Head: Innovation in China and the US [Innovate on Purpose]
    A survey comparing the attitudes and expectations about the US and China in regard to innovation finds some relatively unexpected differences, and some safe assumptions.

Innovation [2009-11-30]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

  • Patent Volume Isn’t the Best Innovation Gauge [BusinessWeek: Innovate]
    Patent volume isn’t necessarily a valid proxy for innovation. A study by the Patent Board, an intellectual-property consultancy, shows there are other—and better—ways to quantify innovation. Ranked by sheer volume, Honda Motor is No. 1, with 54. That’s almost twice second-place Panasonic, which has 28. Ranked by other metrics, though, Honda isn’t a leader.
  • The Downside of Seeking Common Ground [strategy+business]
    People’s tendency to find common ground in conversation by focusing on what’s familiar can stifle the most innovative thinkers.
  • Is America Losing Its Mojo? [Newsweek]
    Innovation is as American as baseball and apple pie. But some traditions can’t be trademarked.
  • Innovation relies on synthesis [Innovate on Purpose]
    We often talk about the importance of combining disparate skills or capabilities when innovating, or holding two diametrically opposing ideas and finding the happy medium. What should be obvious is that one of the most important skills from an innovation perspective is the act and insight of synthesis.

Innovation [2009-11-16]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

  • Warren Buffett’s bet against innovation [BusinessWeek: Innovate]
    In proclaiming an “all-in wager on the economic future of the United States, Warren Buffett just paid $44 billion for a 19th century technology platform, a railroad, that carries 20th century goods—coal, agriculture, imports from Asia, petroleum. This is a vision of an America mired in the past and in economic and political decline. And Buffett just might be right. He has a great track record betting against innovation.
  • Embracing Innovation: a new methodology for feature film production in Australia [Centre for Screen Business]
    Do too many Australian films fall into a budgetary ‘no-man’s land’ – not big enough to compete with the US studios, yet too big to stand a chance of commercial viability in a market flooded with independent films? Robert Connolly’s recommendations provide us with valuable grist for the mill as we, in the IT industry, work our way through the current evolutionary phase our industry is going through, driven by the shift from large, on premises applications to a future increasingly dominated by cloud solutions. His approach to the problem is also an excellent model of how to engage with the wholesale transformation of an industry.
  • 10 examples of minimum viable products [Venture Hacks]
    Brilliant products are rarely the result of brilliant ideas. Most products start small, as minimum viable products, and then grow as the customers and developers work together to learn what the product should be.
  • What do the crowds know about innovation? [Innovate on Purpose]
    Companies use different strategies and techniques for crowdsourcing ideas. All of these approaches help gather ideas from the crowd, but they also serve as trend spotting and public relations opportunities as well, and some companies might be more interested in these secondary effects. As Henry Ford pointed out, “If I had asked my customers what they wanted, they would have said a faster horse.”

Innovation [2009-11-02]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

Innovation [2009-10-05]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

This issue: