Category Archives: Innovation

Using Data Analytics to Track Innovation Success

Using Data Analytics to Track Innovation Success

GUEST POST from Art Inteligencia

In today’s fast-paced business environment, the importance of innovation cannot be overstated. However, investing in innovation without tracking its success can be a gamble. Enter data analytics—an indispensable tool for gauging the effectiveness of innovation efforts. By leveraging data analytics, organizations can quantify the impact of their innovations, optimize their strategies, and ultimately drive sustainable growth.

The Role of Data Analytics in Innovation

Data analytics provides a structured approach to understanding the performance of innovation initiatives. By quantifying results and tying them directly to business objectives, organizations can:

  • Identify successful innovations early
  • Optimize resource allocation
  • Increase ROI from innovation investments
  • Inform strategic decision-making with real-time insights

“Without data, you’re just another person with an opinion.” – W. Edwards Deming

Case Study 1: Tech Innovator’s AI Solution

Background

A leading tech company, XYZ Innovations, aimed to revolutionize customer service using artificial intelligence (AI). They developed an AI-powered chatbot capable of resolving customer queries autonomously.

Data Analytics Approach

To track the success of this innovation, XYZ Innovations implemented a comprehensive data analytics framework:

  • User Interaction Data: Analyzed the volume of customer interactions and resolution rates.
  • Sentiment Analysis: Monitored customer sentiment pre- and post-chatbot implementation.
  • Cost-Benefit Analysis: Evaluated cost savings from reduced human interventions compared to the investment in AI development.
  • Feedback Loop: Enabled continuous improvement of AI capabilities by leveraging real-time data and feedback from users.

Results

The data analytics revealed a 40% increase in customer satisfaction and a 25% reduction in operational costs. The AI chatbot proved not only to be a financial success, but it also elevated the company’s customer service experience. The insights gained allowed XYZ Innovations to refine their AI capabilities and expand into new customer service applications.

Case Study 2: Manufacturer’s Sustainable Material Initiative

Background

ABC Manufacturing sought to lead its industry in sustainability by introducing a new eco-friendly material for their product line. They needed to ensure that their innovation positively impacted both the environment and their bottom line.

Data Analytics Approach

The company leveraged data analytics in several key areas:

  • Lifecycle Assessment: Calculated the environmental footprint from production to disposal compared to conventional materials.
  • Sales Analytics: Tracked sales patterns to see if consumers preferred the eco-friendly offerings.
  • Market Sentiment Analysis: Assessed market perception and brand elevation via social media listening tools.
  • Supply Chain Data: Used predictive analytics to optimize the supply chain for the new material, minimizing costs and waste.

Results

Data analytics showcased a 30% reduction in carbon footprint and a 15% increase in sales of the eco-friendly product line. Additionally, market sentiment improved, solidifying ABC Manufacturing as a leader in sustainability. The data-driven insights enabled the company to scale their use of sustainable materials, benefiting both the planet and their financial health.

Conclusion

Data analytics is not just a tool for tracking past performance; it is a strategic enabler for fostering continuous innovation. By adopting a data-driven approach, organizations can not only validate their innovation investments but also stay ahead in their respective industries. As these case studies demonstrate, data analytics can drive meaningful insights that inform successful innovation strategies. The key is to embrace this power, leverage the rich data available, and embark on a journey of continuous learning and adaptation.

To thrive in the future, businesses must intertwine data analytics deeply within their innovation processes. With the right data, not only can they measure success, but they can also innovate smarter, faster, and with a higher degree of certainty.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

The Role of Psychological Safety in Innovation

The Role of Psychological Safety in Innovation

GUEST POST from Art Inteligencia

In the rapidly changing world of business, innovation is the lifeblood of sustained success. Harnessing creativity, collaboration, and experimentation is crucial, yet these elements can only thrive in an environment where team members feel psychologically safe. Psychological safety is the belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes. This article explores the vital role of psychological safety in fostering innovation and presents case studies to illustrate its impact in real-world scenarios.

Understanding Psychological Safety

Coined by Harvard Business School professor Amy Edmondson, psychological safety describes a workplace culture where individuals feel secure enough to take interpersonal risks. This concept is critical for innovation because it encourages openness, where employees can freely share ideas, experiment without fear of failure, and embrace creative problem-solving processes.

Benefits of Psychological Safety for Innovation

  • Encourages Idea Generation: Team members are more likely to propose innovative ideas if they are confident they won’t be ridiculed or dismissed.</ li>
  • Facilitates Learning from Mistakes: A psychologically safe environment allows teams to learn and grow from failures, turning setbacks into stepping stones for future success.
  • Enhances Collaboration: When employees feel safe, they are more likely to share knowledge, ask for help, and work together effectively.
  • Increases Employee Engagement: Psychological safety fosters a sense of belonging and motivation, leading to higher levels of engagement and productivity.

Case Studies

Case Study 1: Google’s Project Aristotle

Google embarked on a quest to understand what makes a team effective, which led to Project Aristotle in 2012. Through extensive research, they discovered that psychological safety was the most critical factor in high-performing teams.

Challenges Faced: Google identified that many of their teams struggled with collaboration due to fear of judgment or reproach.

Actions Taken: Google implemented practices to foster psychological safety. This included promoting open dialogue, encouraging risk-taking without penalization, and ensuring every team member’s voice was heard.

Results: Teams that embraced psychological safety showed significant improvements in innovation output, efficiency, and employee satisfaction. The project reinforced that fostering a safe environment for risk-taking and open communications was essential to driving innovation.

Case Study 2: W.L. Gore & Associates

W.L. Gore & Associates, the company behind Gore-Tex, is renowned for its unique organizational culture that emphasizes psychological safety.

Challenges Faced: As a company rooted in innovative product development, ensuring continuous creativity while managing market pressures posed significant challenges.

Actions Taken: W.L. Gore adopted a flat organizational structure and a philosophy called “lattices,” where associates have the freedom to speak up, propose ideas, and lead projects without hierarchical constraints.

Results: This approach led to groundbreaking products and technologies, such as the Gore-Tex fabric. By sustaining an environment where associates felt safe to experiment and potentially fail, Gore consistently maintained a pipeline of innovative products.

Conclusion

Innovation thrives where psychological safety is prioritized. Organizations that nurture an environment of trust and openness not only unlock their employees’ creative potential but also drive sustainable growth and success. Leaders must actively foster psychological safety to build dynamic, innovative teams ready to tackle the challenges of the future.

This article features a thorough examination of the role of psychological safety in innovation, with practical insights conveyed through notable case studies from Google and W.L. Gore & Associates, reinforcing the concept’s critical importance in real-world applications.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

To Change the World You Must First Learn Something About It

To Change the World You Must First Learn Something About It

GUEST POST from Greg Satell

Anybody who has waited for a traffic light to change, in the middle of the night at an empty intersection, knows the urge to rebel. There is always a tension between order and freedom. While we intuitively understand the need for order to constrain others, we yearn for the freedom to do what we want and to seek out a vision and sense of meaning in our lives.

Yet as we have seen over the past decade, attempts to overturn the existing order usually fail. The Tea Party erupted in 2009, but had mostly sputtered out by 2014. #Occupy protests and Black Lives Matter sent people into the streets, but achieved little, if anything. Silicon Valley “unicorns” like WeWork routinely go up in flames.

Not all revolutions flop, though. In fact, some succeed marvelously. What has struck me after researching transformational change over nearly two decades is how similar successful efforts are. They all experience failures along the way. What makes the difference is their ability to learn, adapt and change along the way. That’s what allows them to prevail.

Five Kids Meet In A Cafe

One day in 1998, a group of five friends met in a cafe in Belgrade. Although still in their 20s, they were already experienced activists and most of what they experienced was failure. They had taken part in student protests against the war in Bosnia in 1992, as well in the larger uprisings in response to election fraud in 1996. Neither had achieved much.

Having had time to reflect on their successes and failures, they hatched a new plan. They knew from their earlier efforts that they could mobilize people and get them to the polls for the presidential election in 2000. They also knew that Slobodan Milošević, who ruled the country with an iron hand, would try and steal the election, just as he did in 2006.

So that’s what they planned for.

The next day, six friends joined the five from the previous day and, together, they formed the original 11 members of Otpor, the movement that would topple the Milošević regime. They began slowly at first, performing pranks and street theater. But within two years it grew to over 70,000 members, with chapters all over Serbia. Milošević was ousted in the Bulldozer revolution in 2000. He would die in his prison cell at The Hague in 2006.

What Otpor came to understand is that it takes small groups, loosely connected, but united by a shared purpose to drive transformational change. The organization was almost totally decentralized, with just a basic “network meeting” to share best practices every two weeks. Nevertheless, by empowering those smaller groups and giving them a shared sense of mission, they were able to prevail over seemingly impossible odds.

Three Mid-Level executives See A Problem That Needs Fixing

In 2017, John Gadsby and two colleagues in Procter & Gamble’s research organization saw that there was a problem. Although cutting-edge products were being developed all around them, the processes at the 180 year-old firm were often antiquated, making it sometimes difficult to get even simple things done.

So they decided to do something about it. They chose a single process, which involved setting up experiments to test new product technologies. It usually took weeks and was generally considered a bottleneck. Utilizing digital tools, however, they were able to hone it down to just a few hours. It was a serious accomplishment and the three were recognized with a “Pathfinder” award by the company CTO.

Every change starts out with a grievance, such as the annoyance of being bogged down by inefficient processes. The first step forward is to come up with a vision for how you would like things to be different. However, you can never get there in a single step, which is why you need to identify a single keystone change to show others that change is really possible.

That’s exactly what the team at P&G did. Once they showed that one process could be dramatically improved, they were able to get the resources to start improving others. Today, more than 2,500 of their colleagues have joined their movement for process improvement, called PxG, and more than 10,000 have used their applications platform.

As PxG has grown it has also been able to effectively partner with other likeminded initiatives within the company, reinforcing not only its own vision, but those of others that share its values as well.

The One Engineer Who Simply Refused To Take “No” For An Answer

In the late 1960’s, Gary Starkweather was in trouble with his boss. As an engineer in Xerox’s long-range xerography unit, he saw that laser printing could be a huge business opportunity. Unfortunately, his manager at the company’s research facility in upstate New York was focused on improving the current product line, not looking to start a new one.

The argument got so heated that Starkweather’s job came to be in jeopardy. Fortunately, his rabble-rousing caught the attention of another division within the company, the Palo Alto Research Center (PARC), which was less interested in operational efficiency than inventing an entirely new future. They eagerly welcomed Starkweather into their ranks with open arms.

Unlike his old lab, PARC’s entire mission was to create the future. One of the technologies it had developed, bitmapping, would revolutionize computer graphics, but there was no way to print the images out. Starkweather’s work was exactly what they were looking for and, with the Xerox’s copier business in decline, would eventually save the company.

The truth is that good ideas fail all the time and it often has little to do with the quality of the idea, the passion of those who hold it or its potential impact, but rather who you choose to start with. In the New York lab, few people bought into Starkweather’s idea, but in Palo Alto, almost everyone did. In that fertile ground, it was able to grow, mature and triumph.

When trying to get traction for an idea, you always want to be in the majority, even if it is only a local majority comprising a handful of people. You can always expand a small majority out, but once you are in the minority you will get immediate pushback and will need to retrench.

The Secret to Subversion

Through my work, I’ve gotten to know truly revolutionary people. My friend Srdja Popović was one of the original founders of Otpor and has gone on to train activists in more than 50 countries. Jim Allison won a Nobel Prize for discovering Cancer Immunotherapy. Yassmin Abdel-Magied has become an important voice for diversity, equity and inclusion. Many others I profiled in my books, Mapping Innovation and Cascades.

What has always struck me is how different real revolutionaries are from the mercurial, ego-driven stereotypes Hollywood loves to sell us. The truth is that all of those mentioned above are warm, friendly and genuinely nice people who are a pleasure to be around (or were, Gary Starkweather recently passed).

What I’ve found over the years is that sense of openness helped them succeed where others failed. In fact, evidence suggests that generosity is often a competitive advantage for very practical reasons. People who are friendly and generous tend to build up strong networks of collaborators, who provide crucial support for getting an idea off the ground.

But most of all it was that sense of openness that allowed them to learn, adapt and identify a path to victory. Changing the world is hard, often frustrating work. Nobody comes to the game with all the answers. In the final analysis, it’s what you learn along the way—and your ability to change yourself in response to what you learn—that makes the difference between triumph and bitter, agonizing failure.

— Article courtesy of the Digital Tonto blog
— Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

The Future of AR and VR in Product Design

The Future of AR and VR in Product Design

GUEST POST from Art Inteligencia

As we stand on the cusp of the next major technological revolution, Augmented Reality (AR) and Virtual Reality (VR) are poised to transform the landscape of product design as we know it. These immersive technologies promise to introduce a raft of new opportunities for designers, engineers, and all stakeholders involved in bringing a product concept to fruition. In this article, we’ll explore the future of AR and VR in product design and offer insights through two compelling case studies.

Case Study 1: Ford Motor Company’s Virtual Reality Design Studio

At the forefront of AR and VR innovation in product design is Ford Motor Company. Known for their forward-thinking approach, Ford has fully embraced VR to revolutionize their vehicle design process. By leveraging powerful VR environments, Ford’s design team can visualize, modify, and refine vehicle prototypes in a 3D immersive space, long before any physical models are built.

The transition from traditional clay models to VR environments has significantly accelerated Ford’s design cycle. Designers can now make instant modifications, test different configurations, and even simulate real-world driving conditions, providing invaluable insights into vehicle performance and user experience. Feedback can be gathered from various stakeholders, including engineers and consumers, in real time, reducing costs and fostering a more collaborative design process.

Case Study 2: IKEA’s Augmented Reality App

IKEA has always been a trailblazer in enhancing the customer experience, and their embrace of AR technology is a testament to that. Introducing the IKEA Place app, the furniture giant has empowered customers to visualize how products will look and fit in their own homes using augmented reality.

The app allows users to virtually place true-to-scale 3D models of IKEA furniture in their living spaces via a smartphone camera. This capability helps customers make informed purchase decisions by ensuring the products they select will match their decor and spatial constraints. For designers, this level of immediate, practical feedback from end-users has driven more thoughtful, functional design choices and expedited the iteration process.

Impact and Future Prospects

These case studies illustrate the immense potential of AR and VR in product design. By enabling real-time collaboration, reducing prototyping costs, and offering enriched user feedback, these technologies are reshaping how products are conceived, developed, and brought to market.

Looking ahead, the integration of AR and VR with artificial intelligence, machine learning, and other emerging technologies will only enhance their capabilities. Imagine an intelligent VR design assistant that offers predictive analytics based on market trends or an AR tool that can instantly suggest improvements as a product designer works on a digital prototype. The possibilities are boundless.

In conclusion, AR and VR are not just tools of convenience but are becoming indispensable elements of the product design ecosystem. As we continue to push the boundaries of innovation, embracing these technologies will be critical for any organization aiming to remain competitive in the dynamic global marketplace.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: FreePik

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Don’t Stop Thinking About Tomorrow

Don't Stop Thinking About Tomorrow

GUEST POST from Robert B. Tucker

Ten years ago, frigid temperatures in Texas caused rolling blackouts, and millions lost power. The state was warned to weatherize its power grid to prepare for more extreme weather but never got around to it. Then, in February of this year, plummeting temperatures again caused widespread outages. Nine hundred people died, mostly from frostbite. Members of ERCOT, the state’s “electricity reliability board” resigned.

What happened – or failed to happen — in Texas is emblematic of how we come to make decisions in a period of ongoing crisis. ERCOT’s failure to act on clear evidence of what needed to be done to avert future disaster is an all-too-common reaction in today’s disrupted age. We kick the can down the road. We cross our fingers and hope we’re not in charge when events hit the fan.

But the issue is not just how we mitigate or don’t mitigate risk. It is also about how leaders manage and plan for future opportunity.

Texas’ power grid reliability managers failed to weatherize. But the times we are living in demand that we futurize our thinking in order to avert future disasters, but also foresee future ways to add value, serve customers, and build new markets that don’t even exist today.

From pandemic to the dastardly attack on the US Capitol to a steady barrage of climate change-emboldened floods, wildfires, and hurricanes, we all seem to be suffering from Disaster Fatigue. Faced with too many warnings — and the need to make too many decisions — it’s easy to allow our thinking to lapse into what I call Defeatist Mode, and essentially shut down our Idea Factories.

To ward off Disaster Fatigue and get the creative juices flowing again, I recommend that you and your organization consciously start spending more time thinking about tomorrow. I call this process Managing the Future, and it involves managing a cultural shift from present circumstances to the future state we want to make manifest.

Manage the Future Manage the Shift

How to Manage the Shift

Economist Rudy Dornbusch once observed that things often take longer to happen than we think they should. But then they happen faster than we ever thought they would. That’s the sense I get as I have returned to the lecture circuit this fall and have spoken with dozens of leaders about where we are right now.

There’s a growing sense that Covid 19 is not going to go away completely for the foreseeable future. Instead, we are moving from Pandemic to Endemic (in other words the virus and its variants will still be with us, but enough people will have been vaccinated or become immune such that a semblance of normalcy returns).

During this period, leaders especially need to consciously shift attention away from a crisis management mentality and towards an emphasis on managing tomorrow’s potentiality.

As I see it, this is exciting news. For those willing to engage with the future, there is a wide-open field of opportunity. Never has there been a greater need for those with a vision of positivity as regards the future.

A recent survey conducted by Lancet, the British medical journal, found that 45 percent of Millennials in ten countries surveyed are so worried about climate change that it affects their daily life and functioning. So often the prevailing attitude is “we’re doomed.”

“As a young person, when you see a trend coming down the pike, you know it’s going to hit you,” writes Sara Kessler, in Gigged: The End of the Job and the Future of Work. No generation is allowed to sit out the future, and right now the 71 million strong Millennial Generation has decisions to make about Climate Change for which there will be no “do-overs.”

Yet even with climate disasters increasing at an increasing rate, history tells us that our attitude and belief in a more positive future determines more about outcomes than any other factors. We can muster the brainpower to invent and unleash massive climate-cleansing innovations that keep global temperatures from rising more than 1.5 degrees centigrade, but only if we believe we can.

To do so we must choose optimism over pessimism. We can choose optimism in the face of headlines that declare we’re doomed as a species. We can form study groups and tiger teams to look farther out and contemplate how our industry is changing, how our employee’s expectations are changing, how our customers’ needs are changing, and in doing so we can choose to think positive thoughts.

As we think, so we become. By consciously taking charge of our “self-talk” we can make the shift from defeatist, reactive, and crisis-driven thinking to deliberate, purpose-driven, future-focused thinking.

For those with an eye on their attitude, who monitor emerging technologies and social, demographic, and economic trends there are fewer surprises, fewer blindsides, and greater opportunities to own the future.

As Fleetwood Mac sang:

“Don’t stop thinking about tomorrow
It’ll be better than before…
Open your eyes and look at the day
You’ll see things in a different way”

Image credits: Robert B. Tucker, Pexels

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Balancing Short-Term Wins and Long-Term Innovation Goals

Balancing Short-Term Wins and Long-Term Innovation Goals

GUEST POST from Chateau G Pato

In today’s rapidly evolving business landscape, organizations face the dual challenge of achieving short-term wins while steadily progressing towards long-term innovation goals. The ability to balance these two objectives is crucial for sustainable success. In this article, we will explore strategies for maintaining this balance and examine two compelling case studies that highlight the importance of aligning short-term and long-term efforts.

Strategies for Balancing Short-Term and Long-Term Goals

To successfully balance short-term wins with long-term innovation goals, organizations should consider the following strategies:

  • Set Clear Objectives: Outline specific, measurable objectives that align with both short-term and long-term goals.
  • Foster an Innovative Culture: Cultivate a culture that encourages experimentation, learning, and the sharing of ideas.
  • Ensure Agility: Implement agile methodologies to quickly adapt to changes and seize opportunities.
  • Allocate Resources Wisely: Allocate resources, including time, budget, and talent, strategically to support both immediate and future initiatives.
  • Monitor and Adjust: Continuously monitor progress and be prepared to adjust plans as necessary to maintain alignment with overall goals.

Case Study 1: Adobe – Embracing Continuous Innovation

Background

Adobe, a multinational software company known for its creative tools such as Photoshop and Illustrator, faced a critical decision in the early 2010s. The company needed to transition from traditional software licensing to a cloud-based subscription model to ensure long-term growth and innovation.

Short-Term Wins

To gain buy-in and demonstrate immediate value, Adobe introduced Adobe Creative Cloud, allowing users to subscribe to their software on a monthly basis. This move provided immediate financial gains by creating a steady, recurring revenue stream, and giving customers more flexibility.

Long-Term Innovation

While the transition to a subscription model was a significant short-term win, Adobe also invested heavily in long-term innovation. They focused on integrating AI and machine learning across their platforms, as well as expanding their ecosystem with new tools and services. The shift to Creative Cloud allowed Adobe to continuously update their software, ensuring that customers had access to the latest innovations without the need for new purchases.

Impact

The balance of short-term wins with a focus on long-term goals enabled Adobe to thrive in a rapidly changing market. Today, Adobe Creative Cloud is a cornerstone of the company’s success, providing substantial value to customers while ensuring sustained innovation.

Case Study 2: Amazon – Innovating for the Future

Background

Amazon, the global e-commerce and technology giant, has consistently balanced short-term operational efficiency with long-term innovation. One notable example of this balance is their approach to Amazon Web Services (AWS).

Short-Term Wins

Initially, Amazon focused on optimizing its retail operations to achieve short-term wins. They streamlined logistics, optimized the supply chain, and enhanced customer experience. These efforts generated immediate gains and established Amazon as a leader in the retail space.

Long-Term Innovation

Simultaneously, Amazon recognized the potential of cloud computing and invested heavily in the development of AWS. This long-term vision required substantial investment but promised a revolutionary shift in how businesses manage their IT infrastructure. AWS allowed Amazon to introduce new services and products, such as data analytics and machine learning, which have had a transformative impact across industries.

Impact

The strategy of balancing short-term improvements with visionary, long-term projects has paid off profoundly for Amazon. AWS is now a significant revenue generator and a critical driver of the company’s future growth and innovation. Amazon’s ability to balance the two has made it one of the most valuable and innovative companies in the world.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Competing in a New Era of Innovation

Competing in a New Era of Innovation

GUEST POST from Greg Satell

In 1998, the dotcom craze was going at full steam and it seemed like the entire world was turning upside down. So people took notice when economist Paul Krugman wrote that “by 2005 or so, it will become clear that the internet’s impact on the economy has been no greater than the fax machine’s.”

He was obviously quite a bit off base, but these types of mistakes are incredibly common. As the futurist Roy Amara famously put it, “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” The truth is that it usually takes about 30 years for a technology to go from an initial discovery to a measurable impact.

Today, as we near the end of the digital age and enter a new era of innovation, Amara’s point is incredibly important to keep in mind. New technologies, such as quantum computing, blockchain and gene editing will be overhyped, but really will change the world, eventually. So we need to do more than adapt, we need to prepare for a future we can’t see yet.

Identify A “Hair-On-Fire” Use Case

Today we remember the steam engine for powering factories and railroads. In the process, it made the first industrial revolution possible. Yet that’s not how it started out. Its initial purpose was to pump water out of coal mines. At the time, it would have been tough to get people to imagine a factory that didn’t exist yet, but pretty easy for owners to see that their mine was flooded.

The truth is that innovation is never really about ideas, it’s about solving problems. So when a technology is still nascent, doesn’t gain traction in a large, established market, which by definition is already fairly well served, but in a hair-on-fire use case — a problem that somebody needs solved so badly that they almost literally have their hair on fire.

Early versions of the steam engine, such as Thomas Newcomen’s version, didn’t work well and were ill-suited to running factories or driving locomotives. Still, flooded mines were a major problem, so many were more tolerant of glitches and flaws. Later, after James Watt perfected the steam engine, it became more akin to technology that remember now.

We can see the same principle at work today. Blockchain has not had much impact as an alternative currency, but has gained traction optimizing supply chains. Virtual reality has not really caught on in the entertainment industry, but is making headway in corporate training. That’s probably not where those technologies will end up, but it’s how they make money now.

So in the early stages of a technology, don’t try to imagine how a perfected version fit in, find a problem that somebody needs solved so badly right now that they are willing to put up with some inconvenience.

The truth is that the “next big thing” never turns out like people think it will. Putting a man on the moon, for example, didn’t lead to flying cars like in the Jetsons, but instead to satellites that bring events to us from across the world, help us navigate to the corner store and call our loved ones from a business trip.

Build A Learning Curve

Things that change the world always start out arrive out of context, for the simple reason that the world hasn’t changed yet. So when a new technology first appears, we don’t really know how to use it. It takes time to learn how to leverage its advantages to create an impact.

Consider electricity, which as the economist Paul David explained in a classic paper, was first used in factories to cut down on construction costs (steam engines were heavy and needed extra bracing). What wasn’t immediately obvious was that electricity allowed factories to be designed to optimize workflow, rather than having to be arranged around the power source.

We can see the same forces at work today. Consider Amazon’s recent move to offer quantum computing to its customers through the cloud, even though the technology is so primitive that it has no practical application. Nevertheless, it is potentially so powerful—and so different from digital computing—that firms are willing to pay for the privilege of experimenting with it.

The truth is that it’s better to prepare than it is to adapt. When you are adapting you are, by definition, already behind. That’s why it’s important to build a learning curve early, before a technology has begun to impact your business.

Beware Of Switching Costs

When we look back today, it seems incredible that it took decades for factories to switch from steam to electricity. Besides the extra construction costs to build extra bracing, steam engines were dirty and inflexible. Every machine in the factory needed to be tied to one engine, so if one broke down or needed maintenance, the whole factory had to be shut down.

However, when you look at the investment from the perspective of a factory owner, things aren’t so clear cut. While electricity was relatively more attractive when building a new factory, junking an existing facility to make way for a new technology didn’t make as much sense. So most factory owners kept what they had.

These types of switching costs still exist today. Consider neuromorphic chips, which are based on the architecture of the human brain and therefore highly suited to artificial intelligence. They are also potentially millions of times more energy efficient than conventional chips. However, existing AI chips also perform very well, can be manufactured in conventional fabs and run conventional AI algorithms, so neuromorphic chips haven’t caught on yet.

All too often, when a new technology emerges we only look at how its performance compares to what exists today and ignore the importance of switching costs—both real and imagined. That’s a big part of the reason we underestimate how long a technology takes to gain traction and underestimate how much impact it will have in the long run.

Find Your Place In The Ecosystem

We tend to see history through the lens of inventions: Watt and his steam engine. Edison and his light bulb. Ford and his assembly line. Yet building a better mousetrap is never enough to truly change the world. Besides the need to identify a use case, build a learning curve and overcome switching costs, every new technology needs an ecosystem to truly drive the future.

Ford’s automobiles needed roads and gas stations, which led to supermarkets, shopping malls and suburbs. Electricity needed secondary inventions, such as home appliances and radios, which created a market for skilled technicians. It is often in the ecosystem, rather than the initial invention, where most of the value is produced.

Today, we can see similar ecosystems beginning to form around emerging technologies. The journal Nature published an analysis which showed that over $450 million was invested in more than 50 quantum startups between 2012 and 2018, but only a handful are actually making quantum computers. The rest are helping to build out the ecosystem.

So for most of us, the opportunities in the post-digital era won’t be creating new technologies themselves, but in the ecosystems they create. That’s where we’ll see new markets emerge, new jobs created and new fortunes to be made.

— Article courtesy of the Digital Tonto blog
— Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Lean Startup Methodology

Building a Business with Minimal Waste

Lean Startup Methodology - Building a Business with Minimal Waste

GUEST POST from Chateau G Pato

In today’s competitive business landscape, achieving success requires more than just a great idea.
Entrepreneurs need a systematic approach to quickly identify what works and what doesn’t, all while minimizing waste.
Enter the Lean Startup Methodology – a revolutionary approach that involves building a business by experimenting, iterating, and validating with minimal resources.

Understanding Lean Startup Methodology

The Lean Startup Methodology, coined by Eric Ries in his seminal book “The Lean Startup,” is based on the principles of lean manufacturing.
It emphasizes the importance of creating a Minimum Viable Product (MVP), validated learning, rapid iteration, and pivoting based on customer feedback.
This approach allows startups to validate their business ideas quickly and efficiently, reducing the risk of investing time and money into unproven concepts.

Case Studies

Case Study 1: Dropbox

One of the most well-known examples of the Lean Startup Methodology in action is Dropbox. Before investing heavily in product development, Dropbox’s founders aimed to validate their idea: a simple-to-use file-sharing service.
Instead of building a fully-featured product, they started with a short video demonstrating the core functionality of Dropbox. This MVP helped them gauge interest and gather valuable feedback from potential users.

The video went viral on various tech forums and social media platforms, quickly securing thousands of sign-ups for the beta version of Dropbox. By using this minimally viable form of validation, Dropbox managed to refine its product with minimal waste and significant user input.
Today, Dropbox is a multi-billion dollar company, and it all started with a simple MVP and a clear focus on validated learning.

Case Study 2: Zappos

Zappos, now one of the largest online shoe and clothing retailers, also adopted a Lean Startup approach in its early days. Rather than investing in a large inventory upfront, founder Nick Swinmurn started with a simple website that displayed photos of shoes.
Whenever a customer placed an order, Swinmurn would personally go to local shoe stores to buy the shoes and ship them directly to the customer.

This MVP allowed Zappos to validate the demand for online shoe shopping without the risk and expense of holding inventory. It also provided valuable insights into customer preferences and buying behavior, allowing Zappos to fine-tune their business model.
The information and insights gained during this MVP phase were critical in building the foundation for Zappos’ subsequent growth and success.

Conclusion

The Lean Startup Methodology offers a powerful framework for building a business with minimal waste. By focusing on validated learning, creating MVPs, and iterating based on customer feedback, entrepreneurs can quickly determine the viability of their ideas and pivot as needed.
The examples of Dropbox and Zappos illustrate how this approach can lead to tremendous success when executed correctly.

As you embark on your entrepreneurial journey, remember that the key to success is not just having a great idea, but also having the ability to learn, adapt, and evolve with minimal waste. The Lean Startup Methodology provides the tools and mindset needed to achieve this goal.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

We Have the U.S. Military to Thank for the Internet and Other Key Technology

Why We Thank the US Military for the Internet

GUEST POST from Howard Tiersky

From the computers that are used to develop your app to the AI that’s incorporated into your chatbot, many of the technologies that are foundational to our digital world were either massively moved forward or funded by the military. Let’s go over some of those technologies.

Microchips

The microchips that we know today are composed of millions of transistors which were first developed by Bell Labs in 1949. Through military funding, microchips were further improved and incorporated in airplanes and missiles for complex communication and guidance systems.

Today, microchips are one of the basic building blocks of modern electronics, from calculators and cameras to hearing aids, pacemakers, and spacecraft guidance systems, they’re found almost everywhere electronics exist.

Computers

Did you know that the very first computer was funded by the US Military? The ENIAC, built between 1943 and 1945, was the first large-scale computer to run at electronic speed without being slowed by any mechanical parts. It enabled the military to calculate complex wartime ballistic tables, decryption, etc.

Apart from our phones and laptops, computers can be found in our cars, washing machines, manufacturing companies, 3D printers, power plants, banks, and more.

Cellular Technology

The original versions of cellular phone technology were heavily backed by the military for point-to-point soldier communication on the battlefield since they were more beneficial and secure than conventional radio technology.

Today, 80% of the US population owns a smartphone, and our ability to text, call, and video chat with others is a direct result of improved cellular technology.

The Internet

What we know as the internet today started out as the ARPANET. Backed by the US Military, it was initially used for military and academic communication for joint development projects and as a means of communication in the event of a nuclear attack.

As of 2020, 4.66 billion people around the world are internet users. This interconnectivity gave rise to our digital world and serves as the backbone behind almost all digital transformation initiatives today.

GPS

Originally developed for the military to help them navigate terrain and develop weapon targeting systems, the first 20 satellites launched for GPS were funded and driven by the military.

Without GPS technology, we wouldn’t have Google Maps, Waze, or Uber. Depending on your business, there are many ways you can incorporate GPS technology to streamline processes and collect data.

Digital Cameras

The digital sensors used by cameras were developed by the military because of their need to capture and send images wirelessly from satellites in space for terrain mapping and espionage operations.

DSLRs, mirrorless cameras, product advertisements, and face recognition technology all came as a direct result of these digital sensors.

Drones

While there are a lot of non-military applications for drones today, the development of drones was initially funded by the US military to avoid any risk to pilots, fly undetected, and provide real-time footage of an area.

A common use for drones is to help farmers scatter seeds, deliver goods to customers, and collect photos or videos of different places, but there are plenty of other ways we can incorporate them into media, architecture, construction, and emergency response.

Artificial Intelligence

The defense sector is projected to spend about $2 billion in Artificial Intelligence this year. The ability to play out simulations, analyze and understand satellite communications, and improve disaster preparedness are just a few of the many ways AI can be utilized by the military.

Commercially, we see AI in digital assistants like Siri, Bixby, and Google Assistant; chatbots on websites and messaging apps; disease mapping; automated financial investing; virtual booking; and social media monitoring.

So the next time you use your smartphone, Alexa, computer, or GPS, remember to say thank you to a soldier!

In my Wall Street Journal bestselling book, Winning Digital Customers: The Antidote to Irrelevance, I walk you through a simple five-step process to successful digital transformation. This methodology is proven and has worked for many companies that I’ve helped in the past. You can access the first chapter for free here or purchase the hard copy here.

Image credit: Wikimedia Commons

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

The Impact of Collaboration on Sustainable Innovation Initiatives

The Impact of Collaboration on Sustainable Innovation Initiatives

GUEST POST from Art Inteligencia

In today’s rapidly evolving business landscape, the need for sustainable innovation has become more pressing than ever before. Companies across all industries are realizing the importance of developing new and innovative solutions to address current and future challenges, such as climate change, resource scarcity, and social inequality. And while individual efforts can certainly yield results, it is becoming increasingly clear that collaboration is key to driving truly impactful and sustainable innovation initiatives.

Collaboration brings together diverse perspectives, expertise, and resources, enabling companies to tackle complex problems more effectively and efficiently. By working together with other organizations, companies can leverage each other’s strengths and experiences, share knowledge and best practices, and collectively drive innovation that is not only socially and environmentally responsible, but also economically sustainable.

Case Study 1: Adidas and Parley for the Oceans

One powerful example of the impact of collaboration on sustainable innovation initiatives can be seen in the partnership between Adidas and Parley for the Oceans. The two organizations joined forces in 2015 to create a line of sneakers made from recycled ocean plastic. Through this collaboration, Adidas was able to leverage Parley’s expertise in sustainability and ocean conservation, while Parley gained access to Adidas’s global reach and manufacturing capabilities. The result? The successful launch of the Adidas x Parley line, which not only raised awareness about the issue of marine plastic pollution, but also demonstrated the potential for sustainable fashion to make a positive impact on the environment.

Case Study 2: Unilever and Solidaridad

Another compelling case study of collaboration driving sustainable innovation is the partnership between Unilever and Solidaridad. Unilever, a global consumer goods company, teamed up with Solidaridad, a non-profit organization focused on sustainable agriculture, to implement the Sustainable Soy Sourcing Guidelines. These guidelines set out a framework for responsible sourcing of soy, a key ingredient in Unilever’s products, and aimed to improve supply chain transparency and promote sustainable farming practices among soy producers. By working together, Unilever and Solidaridad were able to drive positive change across their supply chains, enhancing the environmental and social sustainability of their products while also fostering innovation in the agricultural sector.

Conclusion

In both of these examples, collaboration played a vital role in driving sustainable innovation by bringing together diverse stakeholders, fostering creative thinking, and enabling the co-creation of solutions that would not have been possible through individual efforts alone. As companies continue to prioritize sustainability and social responsibility in their business strategies, the importance of collaboration in driving meaningful change will only continue to grow. By working together towards a common goal, companies can amplify their impact, accelerate their progress, and create a more sustainable future for all.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Unsplash

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.