Category Archives: Innovation

Where Does Value Come From?

Where does value come from?

What makes people willing to pay $50 for a t-shirt that’s just like the one that ten other people are wearing in the club?

What makes people pay a premium for Apple products with features introduced by other companies months or years before?

If you are truly trying to be innovative, instead of creative or inventive, you MUST understand how your prospective customers assign value for the new solution you are about to introduce. This may require lots of customer interviews, ethnography, forced choices, and other upfront research, but it’s worth it, because if you don’t build your potential innovation on a new, unique insight then it has no chance of succeeding in the marketplace. And as I’ve said before, to achieve innovation you have to focus not just on creating value in the product or service itself, but all three sources of value:

Value Creation
Value Translation
Value Access

So, let’s get back to the $50 t-shirt…

Here in Seattle we are proud of Macklemore and Ryan Lewis, who became a chart topping rap music music act by choosing not to follow the traditional way of making it in the music business so they could not only maintain their creative freedom, but also to make more money. Their mega-hit “Thrift Shop” pokes fun at fashionistas and has helped to make thrift shopping cool instead of embarrassing. Thank you to their combination of skills, they’ve been able to do a lot of the hard work themselves to promote their music, including making this video:

By remaining independent, Macklemore and Ryan Lewis are free to collaborate with whomever they want, when they want, and with sponsors who add value in specific ways consistent with the current project they are working on, instead of a record company extracting a rent from all the artist’s activities (whether they are adding value or not). Here is one such project they undertook with another local artist, Fences, and sponsorship from a company headquartered here locally – T-Mobile USA. It’s a great song and a pretty cool video if you haven’t heard or seen it before:

I for one am grateful that Macklemore and Ryan Lewis didn’t sign a record deal, and record executives have candidly admitted that they would have totally ruined the act by forcing them to change to be more “marketable.” The success of Macklemore and Ryan Lewis (and others) serve to highlight the disruption in the music industry value chain that continues to occur, creating discontinuities that artists like Macklemore and Ryan Lewis can take advantage of. This is of course as long as they have the digital and social skills to get the word out and help their music spread.

Is there disruption happening in your industry’s value chain?

How can you take advantage of the discontinuities?

Please note the following licensing terms for Stikkee Situations cartoons:

1. BLOGS – Link back to https://bradenkelley.com/category/stikkees/ and you can embed them for free
2. PRESENTATIONS, please send $25 to me on PayPal by clicking the button	3. NEWSLETTERS & WEB SITES, please send me $50 on PayPal by clicking the button

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Building a Common Language of Innovation

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Building a Common Language of Innovation

One of the most important efforts you’ll want to make as part of Five Ways to Make Your Innovation Culture Smell Better (free white paper download) is to create a common language of innovation.

Unfortunately, there is no universally accepted definition of the word innovation, and there have even been multiple articles written by the Doblin Group, Geoffrey Moore and others about how many different types of innovation there are and how you must choose which types of innovation to focus on. When it comes to innovation, individuals speak about it differently and there are lots of misunderstandings.

A common language of innovation is the foundation of any sustainable innovation effort and is realized by putting these five building blocks in place:

1. Define what Innovation will mean in your organization

Innovation means so many different things to so many different people that every organization should consciously sit down and define what innovation means for them (and what it does not). Setting the baseline for people in your organization for what innovation is, and what it isn’t, is the first and most important building block in a sustainable innovation foundation.

My definition is:

“Innovation transforms the useful seeds of invention into widely adopted solutions valued above every existing alternative.”

This definition highlights a difference between useful vs. valuable and invention vs. innovation and emphasizes that something must be widely adopted to be an innovation (at the expense of something else).

Next you’ll want to consider how company vision, strategy, goals and infrastructure impact innovation within your organization.

2. Create an Innovation Vision

Employees need to know why innovation is important and what leadership’s vision is for the innovation direction of the organization so they apply their efforts in a manner consistent with the vision.

John Kotter, as part of his change principals, highlighted six key characteristics of an effective vision:

Imaginable: They convey a clear picture of what the future will look like.
Desirable: They appeal to the long-term interest of those who have a stake in the enterprise.
Feasible: They contain realistic and attainable goals.
Focused: They are clear enough to provide guidance in decision making.
Flexible: They allow individual initiative and alternative responses in light of changing conditions.
Communicable: They are easy to communicate and can be explained quickly.

Your innovation vision should ask and answer:

WHERE are we focusing our innovation efforts?
WHY are we pursuing innovation?

3. Craft an Innovation Strategy

When it comes to setting an innovation strategy, organizations should ask and answer the following questions in setting their innovation strategy:

WHAT are we doing to try and realize our vision?
WHO is expected to participate?

Chris Thoen, former head of the Connect+Develop program at P&G had this to say about P&G’s innovation strategy:

“P&G has incredibly talented employees – employees who are proud of the work they do. Moving from “only invented at P&G” to “proudly found elsewhere” required a change in mindset. It was important that employees realized that Connect + Develop was not another name for downsizing and outsourcing jobs but instead, a strategy to ensure sustained business growth for the Company.”

Determine who and what are you going to focus on as part of your innovation strategy and its goals.

4. Set Your Goals for Your Innovation Efforts

When it comes to goals, the S.M.A.R.T. framework states that goals must be:

Specific
Measurable
Achievable
Realistic
Time-bound

When created thoughtfully and consistently with S.M.A.R.T. goal principles, your innovation goals should tell everyone how you are trying to execute on your innovation strategy and vision. One of P&G’s innovation goals was to source 50% of the company’s innovation from outside. This was measured by looking at the source of new product launches and other variables.

5. Build an Innovation Infrastructure That Demonstrates Your Commitment to Innovation

The final building block is achieved by building a framework and a methodology for innovation that your organization can embrace, and by putting the financial and human resources in place to help innovation projects emerge, get funded, and be brought to market successfully. Below you’ll find a sample innovation infrastructure highlighting some of the areas you’ll want to develop and a snapshot of innovation staffing at Whirlpool that shows how deeply their innovation focus is embedded throughout the organization:

Conclusion

If you establish an innovation definition, vision, strategy, goals, and infrastructure you will be well on your way to creating a common language of innovation, which will help to drive alignment, and ultimately, success!

Next Steps:

Watch my FREE Pipeline 2014 keynote session (ON DEMAND) exploring five ways to improve your innovation culture.
Download the FREE WHITE PAPER – Five Ways to Make Your Innovation Culture Smell Better – from the Planview web site.

Image credit: sciencenews.org

References:
1. Stoking Your Innovation Bonfire by Braden Kelley
2. Leading Change by John P. Kotter
3. https://www.doblin.com/tentypes/
4. https://www.dealingwithdarwin.com/resources/pptDownloads.php

Build a common language of innovation on your team

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Are you competing at cloud speed?

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We live in an era of constant, accelerating change, and the only organizations that are equipped to keep pace are those that are capable of competing at cloud speed. Does trading out packaged software installed on your own servers for the cloud-based versions offered by your vendor accelerate your organization to cloud speed?

Sorry, no.

So what the heck is cloud speed anyways?

Competing at cloud speed is a goal that every organization should have, and it requires learning fast not failing fast, it involves creating the flexibility to adapt to trends that spread globally faster than ever before, to respond to competition from unexpected sources, and provides a potential antidote to decreasing corporate lifespans.

Accelerating to cloud speed requires your organization to operate under a series of principles that make it both FAST and agile.

Going FAST (the Right Way)

In the experience of Gordon Tredgold, creator of the FAST Approach to Leadership, we usually end up doing either the wrong job or a poor job in an organization because of a lack of focus or accountability, as a result of work has that’s been made overly complex, or because transparency doesn’t exist across the organization.

The FAST Approach to Leadership attempts to address these concerns by answering the What, Who, How and How Far questions related to the task, service or project that is to be delivered (or goal to be achieved). The following four areas make up the letters of the FAST Approach to Leadership and its FAST acronym:

FOCUS is about the WHAT, what we’re doing, what is our objective, and what does success look like.

ACCOUNTABILITY is about the WHO, who is going to do the work, who will be accountable and how will we hold them accountable.

SIMPLICITY is about the HOW, what is the solution, how are we planning to deliver success. Is our solution simple or have we over complicated it.

TRANSPARENCY is about How Far, How Far we have come and How Far we have to go in order to be successful, it’s also about our honesty about our progress and capability.

Focus and Accountability help to ensure that we are getting the right job done, increasing our effectiveness.

Simplicity and Transparency help to ensure that we do a good job.

The objective of FAST Leadership is to ensure that we do the right job, well, each and every time.

Becoming Agile

According to a recent Forrester report titled Business Agility Starts With Your People, a digital business requires an organization to be able to both sense and execute on change, and Craig Le Clair of Forrester outlined a set of ten dimensions that define the digital business, grouped by market, organization and process:

Market Dimensions

1. Channel Integration – Information sharing and cross-channel experiences

2. Market Responsiveness – Customer knowledge and rapid access to resources

Organization Dimensions

3. Knowledge Dissemination – Broader sharing and flatter organizations

4. Digital Psychology – Trend awareness and digital skill sets

5. Change Management – Embracing change and embedded change management

Process Dimensions

6. Business Intelligence – Information management and distributed analytics

7. Infrastructure Elasticity – Cloud awareness and the embrace of cloud options

8. Process Architecture – Process skills and core system independence

9. Software Innovation – Real-time experience and incremental development

10. Sourcing and Supply Chain – Agile sourcing processes and supply chain flexing skills

People looking for a shortcut might hone in on the Process Dimension named Infrastructure Elasticity because it contains a mention of the word cloud and think that this dimension is the secret to competing at cloud speed, but by itself it is not. Forrester’s research showed that the relative performance of an organization along the Infrastructure Elasticity dimension was not a predictor of organizational success, but instead an enabler of improved performance along other dimensions. Craig Le Clair found that greater business agility comes not just from increased Infrastructure Elasticity, but from consciously utilizing that increase to achieve other improvements, such as an improved Digital Psychology or increased Knowledge Dissemination.

Competing at Cloud Speed

When we think about the cloud, what makes it incredibly powerful for organizations is that it breaks down walls. The cloud makes it possible to quickly get people in different departments, geographies, and even organizations collaborating together using a range of cloud-based tools to achieve business goals. When the cloud is viewed not as a solution, but as an enabler of multiple business agility improvements, and a foundation for the principles of FAST Leadership (focus, accountability, simplicity and transparency), we can finally begin competing at cloud speed.

Competing at cloud speed will help improve the velocity of:

Information flow inside and outside the organization
Decision making and commitment
Resource re-deployment
Channel and customer feedback on course corrections

Competing at cloud speed means putting systems in place that quickly capture the voice of the customer, and broadcast it widely and deeply enough into the organization. It means putting the processes and decision-making tools in place to allow leadership to adapt their strategy, redeploy resources and spin up new cross-border and cross-boundary project teams to full productivity faster than the competition in order to capitalize on changes in customer wants and needs.

Are you competing at cloud speed?

Join Inc. 100 and #1 Leadership Expert, Gordon Tredgold, formerly Head of Service Delivery at Henkel, for a simple approach to improve your operational performance live during our expert webinar on October 8 or register for the OnDemand recording.

Sources:

http://www.theleadershiphub.com/blogs/fast-leadership-0
http://solutions.forrester.com/business-agility/improve-your-business-agility-187UW-2434YQ.html
https://www.linkedin.com/pulse/article/20140914015150-649711-don-t-fail-fast-learn-fast
http://www.business-strategy-innovation.com/Voice-of-the-Customer-White-Paper.pdf

NOTE: This article was written for Intuit Quickbase’s The Fast Track but disappeared off the web so I brought it back here

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The Challenge of Autonomous Teaching Methods

An estimated 250 million children around the world cannot read, write, or demonstrate basic arithmetic skills. Many of these children are in developing countries without regular access to quality schools or teachers. While programs exist to build schools and train teachers, traditional models of education are not able to scale fast enough to meet demand. We simply cannot build enough schools or train enough teachers to meet the need. We are at a pivotal moment where an innovative approach is necessary to eliminate existing barriers to learning, enabling the seeds of innovation to be imparted to every child, regardless of geographic location or economic status.

XPRIZE Chairman and CEO, Dr. Peter H. Diamandis announced the $15M Global Learning XPRIZE today to help solve these challenges. The Global Learning XPRIZE is a five-year competition challenging teams to develop an open source solution that can be iterated upon, scaled and deployed around the world, bringing quality learning experiences to children no matter where they live. Enabling children in developing countries to teach themselves basic reading, writing and arithmetic.

At the same time, XPRIZE will launch an online crowdfunding campaign to mobilize a global street team of supporters to get involved with the Global Learning XPRIZE. Every dollar pledged will go towards optimizing the success of the prize, specifically focusing on supporting team recruitment globally and expanding field testing.

The Global Learning XPRIZE will launch with a six-month team registration period followed by 18 months of solution development. A panel of third-party expert judges will then evaluate and select the top five teams to proceed in the competition, and award each of them a $1M award. Solutions will be tested in the field with thousands of children in the developing world, over an 18-month period. The $10M top prize will ultimately be awarded to the team that develops a technology solution demonstrating the greatest levels of proficiency gains in reading, writing and arithmetic.

The learning solutions developed by this prize will enable a child to learn autonomously. And, those created by the finalists will be open-sourced for all to access, iterate and share. This technology could be deployed around the world, bringing learning experiences to children otherwise thought unreachable, who do not have access to quality education, and supplementing the learning experiences of children who do.

The impact will be exponential. Children with basic literacy skills have the potential to lift themselves out of poverty. And that’s not all. By enabling a child to learn how to learn, that child has opportunity – to live a healthy and productive life, to provide for their family and their community, as well as to contribute toward a peaceful, prosperous and abundant world.

XPRIZE believes that innovation can come from anywhere and that many of the greatest minds remain untapped.

What might the future look like with hundreds of millions of additional young minds unleashed to tackle the world’s Grand Challenges?

The Global Learning XPRIZE is funded by a group of donors, including the Dick & Betsy DeVos Foundation, the Anthony Robbins Foundation, the Econet Foundation, the Merkin Family Foundation, Scott Hassan, John Raymonds and Suzanne West.

For more information, visit http://learning.xprize.org.

COMMENTARY

I am very excited about this new effort, as I am a big believer that we should live in a world where the next Einstein could come from anywhere, but I have a few of concerns:

It seems to be focused on the use of technology
Five years is a long time (will they get a five-year-old solution?)
It doesn’t engage the target users in co-creation throughout the whole process (it’s outside in)
It seems to ignore the infrastructure in place in areas of the greatest need (where students don’t even have desks)
The most capable solutions may be too expensive to implement in the target areas
The goal should be to build an autonomous learning system that can be used for reading, writing, and arithmetic, but also extended to do much more
Teaching students skills autonomously is fine as long as there is social practice as part of the curriculum
An over-reliance on autonomous teaching will lead to less innovation not more
We are already seeing negative effects in first-world society from too much reliance on technology
If we want more innovation, we need to be teaching our kids ICE skills not just STEM, ICE being Invention, Collaboration, and Entrepreneurship – these are all social skills that don’t need technology (but can use it)

For more on my views on improving education (which doesn’t require education reform or new technology), please see my article Stop Praying for Education Reform.

For those of you who are going to enter a team, I look forward to seeing what you come up with and I hope that you’ll keep some of the above in mind!

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Innovation Culture Battle Royale

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Earlier this month I wrote an innovation culture white paper for Planview titled “Five Ways to Make Your Innovation Culture Smell Better” that is getting a great response after my appearance as a keynote speaker at the Pipeline 2014 conference where I spoke on the same topic.

Then recently Jim Brown published a white paper with Planview titled “Creating the Environment to Innovate: How Industry Leaders Put People, Processes and Technology in Place to Drive Innovation” and now Planview wants to know which one people like better…

So I need your vote!

Click this link to go to a web page where you can not only download both white papers, but also cast your votes for mine! 🙂

You might even win a $100 gift card!

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Is there a market for Smartwatches? Can Apple create one?

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Stikkee 3 - Apple Watch

Okay, it’s been a week since the Apple Watch was announced, and do you know what the world’s most popular wearable is likely to be for 2014/2015?

It’s not the iWatch, but the iPhone 6, which is breaking the pre-sales records of the iPhone 5.

No, it’s not an iWatch. Don’t you dare call it that!

We’re Apple and we’ve decided that it’s far too sophisticated and exclusive to be an iWatch.

Oh, and we’ve also decided that you must own at least an iPhone 5 to be privileged enough to wear an Apple Watch.

Okay, so instantly Apple has reduced the potential market size for the Apple Watch from 6 Billion people to about 100 million people (based on statisticbrain’s numbers).

Now, layer on top of this the fact that in a YPulse survey of millenials, only 32% stated that they wear a watch regularly.

$96 million of smartwatches were sold between October and July according to CNet at an average price of $189 (and dropping fast) – often bundled with a phone – and with Samsung wrapping up 78% of the market. If you do the math, that’s just over 500,000 units, less than 1% of the likely iPhone 5 sales over the same period.

The Apple Watch starts at $349.

But wait, we’re not done yet.

Consider that Samsung has become a faster, nimbler innovator in some ways than Apple and are shipping a new version of their smartwatch next month, up to six months before the Apple Watch is expected to be available – oh, and you’ll be able to use their new watch to make phone calls and run lots of wellness apps (including some from Nike). Plus Samsung will probably launch an even more capable version shortly after the Apple Watch starts shipping.

Apple’s already playing catchup in the smartphone market and they haven’t even shipped their first unit.

So if Apple is entering a small market with a declining average unit price against a more nimble competitor, what rabbit do they have up their sleeve to grow the market and increase their stock price?

What will make the Apple Watch a must have?

The iPod was a must have because it allowed you to carry your entire music library around with you after easily organizing it on your PC and syncing it to the iPod. After that you could then easily navigate thousands of songs on the device with the handy click wheel.

The iPhone was a must have because it became the world’s most widely adopted personal, wearable computer. The iPhone disrupted the balance of power in the mobile phone industry and allowed device makers to start offering whatever applications they wanted (unencumbered by the carriers). The iPhone also disrupted the digital camera market, the Flip (super portable, simple video cameras), and the dedicated GPS market.

Other wearables are on the decline.

iPod sales in Q4 2013 were down 52% from Q4 2012.

Google Glasses got a lot of buzz early on, but interest has fizzled.

Fitbits and Nike Fuelbands have lost their luster and momentum.

Even the iPad, which became a must have after Apple solved the Value Translation riddle and properly highlighted its benefits as a more relaxing and accessible computing device, has seen sales fall the past two quarters as the large screen phones have started to become big enough to begin decreasing the need for a separate tablet. If you’re keeping score the iPad disrupted the gaming industry and challenged people to think deeply about their computing device preferences.

Now back to the Apple Watch…

Can a smartwatch really unseat the mother of all wearables, the smartphone?

In an era of declining interest in watches, can Apple change people’s behavior and lead a resurgence in watch wearing?

These are all very tough questions, but they are not tough challenges that Apple hasn’t faced before.

It’s easy to forget that the iPod didn’t become a runaway success until two years after its launch (with the launch of the PC version of iTunes), and that it took a year for Apple to really ramp up sales of the iPhone (after the launch of the App Store), or that Apple got killed in the press after the announcement of the iPad but figured out how to translate its value by the time they started shipping it.

So, is Apple up to the challenge this time?

After their recent string of game-changing innovations the pressure is on!

Please note the following licensing terms for Stikkee Situations cartoons:

1. BLOGS – Link back to https://bradenkelley.com/category/stikkees/ and you can embed them for free
2. PRESENTATIONS, please send $25 to me on PayPal by clicking the button	3. NEWSLETTERS & WEB SITES, please send me $50 on PayPal by clicking the button

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Improving Education for 20 Cents a Student

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I love examples of simple, inexpensive solutions that solve important problems. Solutions like the water bottle light, the gravity light, etc., and Mike Freeston was kind enough to send this most recent example that I will share with you today. Thank you Mike!

The video details the work of a Non-Governmental Organization (aka NGO), that was created as a Community Service Center for marginalized families in rural areas an urban slums. It’s called Aarambh, and they wanted to help students who don’t even have the basic facilities, to be more comfortable and productive at school.

Most schools in rural India have two basic problems:

Schools don’t have proper desks, which leads to poor eyesight, bad posture and bad writing.
Students don’t have school bags.

Aarambh came up with a solution which tackled both these problems with a single, thoughtful design.

Aarambh came up with a design for portable desks made using discarded cardboard boxes (aka cartons). This choice for raw materials is both economical, and easily available. The stencil design, when cut and folded, creates a desk suitable for use by students whom must sit on the floor AND it also can serve as a school bag.

Brilliant!

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Will Health Sensors Make iWatch the Must Have Wearable?

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iWatch Concept with Health Sensors Back in the 1990’s NBC referred to Thursday night as must watch television, and when it comes to making the transformation from invention to innovation, an innovation often needs a ‘Must Have’ feature.

So, with rumors swirling about the potential introduction today of an Apple iWatch, will Health Sensors make the iWatch a ‘Must Have’ or a ‘Must Wear’?

Will the iWatch do to the Fitbit and Nike Fuelband what the iPhone did to the Flip video camera?

If so, it will be yet another example of how it is more important to build a product or service that moves people. Move them not in a spiritual way (although creating something akin to a spiritual experience can help), but in an emotional way where the product or service (through value creation, value access, and value translation) provides enough ‘Must Have’ (or at least ‘Must Try’) to move people to abandon their existing solution (even if it is the ‘Do Nothing’ solution) to try and ultimately adopt your new solution in large numbers.

Moving people in this way is what moves your product or service from being an invention, to being an innovation.

Will the purported ten sensors of the iWatch provide enough entertainment, functionality, and actionable information to make the iWatch a ‘Must Wear’, make it a device that you won’t want to take it off?

If Apple can pull that off, then they will have a huge hit on their hands.

Are they too early like Samsung?

Have they seeded an ecosystem to grow after the launch of the iWatch?

After all it was the ecosystem created around the App Store that turned the iPhone into the market leader, it was the ecosystem created around the iTunes Store (and a Windows version of the software to access it) that turned the iPod into the market leader.

Or is it too early for Apple to launch an iWatch?

What ten sensors would make an iWatch a ‘Must Wear’?

Accelerometer
Pulse monitor
NFC
Blood pressure monitor?
Temperature sensor?
Barometric pressure sensor?
?
?
?
?

I guess we’ll find out next year.

Image Credit: techradar

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Your Chance to Help Overworked Entrepreneurs

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Life for a busy entrepreneur regular working 60 hours a week can lead to a struggle with maintaining a healthy weight. You may find that you are eating out for convenience and getting to the gym very infrequently (if at all). This lifestyle may have been fine through your twenties and early thirties, but after 35, it gets difficult to keep active and you might find those few extra pounds you’ve put on every year are really starting to add up.

Have you had similar struggles?

If you have a way to help motivate overworked entrepreneurs to lay off the takeout and introduce more physical activity into their busy lives, we at Premera would love to hear about it.

Simply post your idea to Premera’s Facebook or Twitter page using the hashtag #IGNITEchange, or as a comment to their stories. You are then automatically entered into a drawing to win a $200 Amazon gift card. Best of all, you have the chance to impact a real person’s life. There will be four chances to win, once every week from now until September 8, 2014 (terms and conditions link expired).

Have a true game-changing idea that will spark families to make lasting, realistic improvements to their health?

Premera is rewarding that type of innovation as well through Premera’s Innovate to Motivate challenge (link expired), which offers a grand prize of $5,000!

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Another Innovation Movie for Kids

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Another Innovation Movie for Kids by Braden Kelley

If you haven’t watched the Disney movie “Meet the Robinsons” with your kids, you should. It may not inject innovation into their DNA, but it will help teach the role of failure in success.

Here is a great quote from the end of the movie from Walt Disney:

“Around here, however, we don’t look backwards for very long.

We keep moving forward, opening up new doors and doing new things, because we’re curious…

and curiosity keeps leading us down new paths.”

The movie celebrates failure and its importance in driving innovation.

For more celebration of progress and a single-minded focus, check out Honda’s ‘Dreams’ campaign from a couple of years ago.

What do think the place is for failure in innovation?

P.S. And if you missed it, I encourage you to check out my other kids movie post – Innovation and Chitty Chitty Bang

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Human-Centered Change and Innovation

Innovation, change and transformation thought leadership, lovingly curated by Braden Kelley

Category Archives: Innovation

Building a Common Language of Innovation

1. Define what Innovation will mean in your organization

2. Create an Innovation Vision

3. Craft an Innovation Strategy

4. Set Your Goals for Your Innovation Efforts

5. Build an Innovation Infrastructure That Demonstrates Your Commitment to Innovation

Conclusion

Next Steps:

Innovation Culture Battle Royale

Is there a market for Smartwatches? Can Apple create one?

Will Health Sensors Make iWatch the Must Have Wearable?

Another Innovation Movie for Kids