Category Archives: Innovation

Understanding Customer Needs and Expectations

Key considerations for planning a customer-centric digital transformation

Understanding Customer Needs and Expectations

GUEST POST from Chateau G Pato

In today’s rapidly evolving business landscape, digital transformation has become a critical imperative for organizations looking to stay competitive and relevant. However, many companies often overlook one crucial aspect of this process – understanding and meeting the needs and expectations of their customers.

A customer-centric approach to digital transformation is essential in ensuring that the changes implemented align with what customers want and need. By putting the customer at the center of the transformation journey, businesses can drive greater customer satisfaction, loyalty, and ultimately, business growth.

To effectively plan a customer-centric digital transformation, organizations must first gain a deep understanding of their customers’ needs, preferences, and pain points. This can be done through a variety of methods, such as customer surveys, focus groups, and data analytics. By collecting and analyzing this information, businesses can identify key trends and insights that can inform their digital transformation strategy.

Case study 1: Amazon

Amazon is a prime example of a company that has successfully implemented a customer-centric digital transformation. By leveraging data analytics and machine learning, Amazon is able to personalize the online shopping experience for each customer, recommend products based on their browsing history, and offer fast and convenient delivery options. This customer-centric approach has helped Amazon cement its position as the largest online retailer in the world, with a loyal customer base and strong brand reputation.

Case study 2: Starbucks

Starbucks is another company that has prioritized customer needs and expectations in its digital transformation efforts. By investing in its mobile app and loyalty program, Starbucks has made it easier for customers to order and pay for their favorite drinks, earn rewards, and receive personalized offers. This has not only improved the customer experience but also increased customer engagement and loyalty. As a result, Starbucks has seen significant growth in its digital sales and overall revenue.

Conclusion

Understanding and meeting customer needs and expectations are essential considerations for planning a successful customer-centric digital transformation. By putting the customer at the center of the transformation journey and leveraging data and insights, businesses can drive greater customer satisfaction, loyalty, and business success. Through the examples of Amazon and Starbucks, we can see the tangible benefits of taking a customer-centric approach to digital transformation. By learning from these companies and incorporating their strategies into their own efforts, organizations can position themselves for long-term success in the digital age.

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: misterinnovation.com

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Lead Innovation, Don’t Manage It

Lead Innovation, Don't Manage It

GUEST POST from Arlen Meyers

Chief Innovation Officers are growing like weeds. Some think their job is to manage innovation.

Some even go so far as to define their desirable traits.

Here is yet another article on how to manage innovation.

Here are some ideas on what it takes to be an innovation manager.

You can tell the CHINOs (Chief Healthcare Innovation Officer) in your office by the chinos and polo shirts they wear. But, just because they wear the same uniforms doesn’t mean they think and work the same. You see, there is no CHINO school.

They might as well quit since managing innovation will take them in the wrong direction. Instead, they should be leading innovators. Here’s why:

1. Everyone seems to have a different definition of innovation. Be sure you are leading people who have the same understanding and objectives.

2. Managing innovation implies that the core competence of an innovative enterprise is their system or culture. While that is important, successful innovation comes from living, breathing humans who innovate or try to repeatedly despite big obstacles.

3. Managing is about optimizing the efficacy and efficiency or resources. Entrepreneurs or intrapreneurs, some of whom are innovators, pursue opportunity with limited resources with the goal of creating user defined value through the deployment of innovation.

4. Leaderpreneurs are different than managers and have a different role. They provide vision, direction and inspiration. Unfortunately, most “leaders” provide motivation, not inspiration. Here are the differences:

  1. External vs. Internal: The first key difference is while motivation is typically accomplished through external factors, inspiration is an internal force. Wayne Dyer puts it this way: “If motivation is when you get hold of an idea and carry it through to its conclusion, inspiration is the reverse. An idea gets hold of you and carries you where you are intended to go.”
  2. Duration and Effectiveness: Since inspiration is an internal force, it lasts longer and is more effective. Motivation, particularly when connected to a system of external rewards, is only effective as long as you are able to keep the system of rewards consistent. Inspiration has deeper roots; its influence sticks with you and propels you further than mere motivation can.
  3. People’s Responses: People respond to inspirational leadership exponentially better than they do to compensation or coercion. People are always more eager to do something when it is an idea they feel connected to and invested in. While external forces can be a key motivator, people will react far better to a personal investment.

The goal is to release the innerpreneur, not use carrots and sticks.

5. Managing is about preserving or building the status quo. Innovating is about making the status quo obsolete.

6. Managers rarely assume the roles of intrapreneurial sponsors. Leaderpreneurs have to to be successful.

7. Managers get in the way by controlling. Leaderpreneurs get out of the way by inspiring.

8. Leaderpreneurs create innovation management systems that can be scaled with the goal of making themselves obsolete as quickly as possible. Managers create systems to protect their jobs.

9. Leaderpreneurs organize chaos and serendipity. Managers strive to standardize.

10. Managers think short term costs. Innovation leaderpreneurs measure things as longer term investments.

A recently released Conference Board report showed a strong link between leadership and innovation. The authors identified nine behaviors that are key to getting results:

  1. Leaders jointly created a vision with their colleagues.Some have thought leadership to be about coming up with a grand strategy, and then enticing the troops to follow you up the hill. But our data showed leaders creating a vision collaboratively, not in a directive manner.
  2. They build trust. We interviewed leaders who were in the top 1% of their organization on creativity. One quality stood out. These leaders trusted their people and in turn their colleagues had an enormous trust in them. One person noted, “To take a risk demands that you feel really safe.” “She always has our back,” said another.
  3. Innovation champions were characterized by a willingness to constantly challenge the status quo.People described innovative leaders as fearless and doing what’s right versus what may be politically correct. Some highly effective leaders of innovation were characterized as being “inverse to the environment.”
  4. Leaders who fostered innovation were noted for their deep expertise.Colleagues noted that it was this “T” quality that defined these leaders. These leaders had a wide range of intellectual curiosity on a horizontal axis, while at the same time were grounded deeply in their knowledge of the technology at the center of what their group did.
  5. They set high goals. Leaders who created innovative teams were noted for setting the bar extremely high, and giving their colleagues the challenge and opportunity to achieve what they believed would be beyond their reach.
  6. Innovative leaders gravitate toward speed. These leaders move at a quick pace. They believe things can be accomplished sooner, not later. They gravitate toward the quick prototype that is put together with duct tape and paper clips in one day over a more perfect result they could create in six months. The graph below shows 360 results for 57,113 leaders who were rated on their speed of execution and their ability to innovate. Note that leaders who move slowly are on average rated at the 12th percentile on their ability to innovate while those who are in the top 10 percent are at the 89th percentile.
  7. They crave information. Innovative leaders keep the team on the same page by flooding them with relevant facts. They excel at asking good question and then being exceedingly good listeners. The combination of “catch and pitch” helps the team to excel at innovation.
  8. They excel at teamwork. The next characteristic of the most innovative leaders was excelling at teamwork and collaboration. It was never about “me.” It was always about the team creating something of value.
  9. They value diversity and inclusion. The most innovative leaders recognize that the creative process feeds on bringing people together who possess sharply differing views and experience. It is the blending of these elements that creates highly innovative solutions.

Here are five strengths of innovative leaders.

Here are some other thoughts on what it takes to lead innovators.

In general,  successful innovators primarily focus on four areas: creating a vision, building an organization that can achieve that vision, leading and empowering their team to succeed in that, as well as ultimately adapting their approach based on what they’ve learned along the way.

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Here are 10 tips on how to create a lead successful innovation teams.

One author noted that “the first step in creating meaningful, long-term, sustainable innovation in any organization is to recognize that cultures cause outcomes.  And if this is true, bad cultures will cause bad outcomes. And if this is true, it further follows that bad leadership causes bad cultures, which in turn cause bad outcomes.”

Harvard Business School Professor Gary Pisano reminds us , though, that the innovation culture must balance easy to like behaviors with some that are less fun and designed to address the main dysfunctions of teams: an intolerance for incompetence, rigorous discipline, brutal candor, a high level of individual accountability and strong leadership.

There are many myths about organizational innovation cultures and how to create them. The truth is that cultures are the result of innovation strategy, structure, processes and people, not the cause. They are created by organizational leaders.

Another problem is that traditional approaches to leadership development no longer meet the needs of organizations or individuals and personal learning clouds are filling the gaps.

Innovation is not a nebulous concept tucked some where in a strategic plan. Like any combat team, it has a face, a heart and a soul and needs to nurtured and led, not managed. In the end, it’s the people, stupid.

Image credit: Pexels

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Encouraging a Risk-Taking Mindset in Your Organization

Encouraging a Risk-Taking Mindset in Your Organization

GUEST POST from Art Inteligencia

The rapid pace of change in today’s business environment demands agility and a willingness to take risks. However, fostering a risk-taking mindset in an organization is easier said than done. It requires deliberate strategy, clear communication, and a supportive culture. Here, we’ll explore practical steps to encourage this mindset by examining two case studies from companies that have successfully navigated this transformation.

Case Study 1: 3M

Overview

3M, a global innovation company, is often cited as a model for fostering a risk-taking culture. Known for its wide range of products and significant number of patents, 3M has embedded risk-taking in its corporate DNA.

Actions Taken

  • 15% Rule: 3M encourages its employees to spend 15% of their work time on ideas of their choosing. This policy gives employees the freedom to explore and experiment without the immediate pressure of delivering results.
  • Cross-Functional Teams: By forming cross-functional teams, 3M brings diverse perspectives together, promoting creative solutions and informed risk-taking.
  • Learning from Failure: 3M celebrates both successes and learnings from failures. They hold ‘failure parties’ to dissect what went wrong and how it can be avoided in the future, thereby destigmatizing failure.

Results

3M’s risk-taking culture has led to products like Post-it Notes and Scotch Tape, revolutionizing the stationery market. Their approach demonstrates that calculated risks, backed by support and learning, can lead to groundbreaking innovations.

Case Study 2: Google

Overview

Google, a pioneer in the tech industry, is another example of a company that thrives on a risk-taking ethos. Their rapid expansion into a variety of tech-related fields is a testament to their willingness to venture into the unknown.

Actions Taken

  • Psychological Safety: Google places high importance on creating environments where employees feel safe to take risks. Project Aristotle highlighted psychological safety as a key component of their high-performing teams.
  • Dedicated Innovation Labs: Google runs innovation labs like X (formerly Google X), which are dedicated to ‘moonshot’ projects with high risk and high reward.
  • Clear Metrics: For each experimental project, Google sets clear milestones and metrics, allowing for informed go/no-go decisions rather than arbitrary cuts based on gut feeling.

Results

Google’s approach to risk-taking has birthed revolutionary products like Google Search, Gmail, and self-driving car technology. By emphasizing psychological safety and creating dedicated spaces for risk, Google continues to lead in innovation.

Key Takeaways

From these case studies, we can extract several key practices that any organization can implement to foster a risk-taking mindset:

  • Encourage Time for Exploration: Allocate time for employees to work on passion projects and explore new ideas.
  • Promote Cross-Functional Collaboration: Bring together diverse teams to fuel innovative thinking.
  • Create a Safe Environment for Failure: Celebrate learnings from failures to reduce the stigma and fear associated with taking risks.
  • Set Clear Metrics and Milestones: Provide clarity on what success looks like to make informed decisions.
  • Support from Leadership: Ensure that leaders actively support and model risk-taking behavior.

By embedding these practices into the fabric of your organization, you can create a dynamic environment where innovation thrives, and calculated risks lead to transformative successes.

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

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Announcing Human-Centered Change & Innovation Weekly

Human-Centered Change and Innovation Weekly Newsletter

We’re about two months into the re-birth and re-branding of Blogging Innovation as Human-Centered Change and Innovation.

At the same time I brought my multiple author blog back to life, I also created a weekly newsletter to bring all of this great content to your inbox every Tuesday.

Human-Centered Change & Innovation Weekly brings four or five great articles as an email to you from myself and a growing roster of talented and insightful contributing authors, including:

Robert B. Tucker, Janet Sernack, Greg Satell, Linda Naiman, Howard Tiersky, Paul Sloane, Rachel Audige, Arlen Meyers, John Bessant, Phil Buckley, Jesse Nieminen, Anthony Mills, Nicolas Bry and your host Braden Kelley.

You can sign up for the newsletter here:


I would be interested to know whether you prefer:

  1. Tuesday
  2. Sunday

And, if you’ve missed out on previous issues and would like to explore them, you’ll find the links below:

Human-Centered Change & Innovation Weekly

Finally, if you know a globally recognized human-centered design, change, innovation, transformation or customer experience author that should be contributing guest articles to the blog and newsletter, have them contact us.

I hope you continue to find value in everyone’s contributions to the conversations around human-centered change, innovation, transformation and experience design!

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The Importance of User Research in Design

The Importance of User Research in Design

GUEST POST from Chateau G Pato

User research is a cornerstone of effective design. In an era of rapid technological advancement, understanding the user’s needs, behaviors, and motivations can make the difference between a product that is adopted and loved, and one that is left on the shelf gathering dust. Here, we dive into the importance of user research in design and illustrate its power through two compelling case studies.

Case Study 1: Samsung Smart TV Remote

Samsung identified that their Smart TV remotes were not as intuitive as they could be. Despite having a sophisticated function set, the remotes were complex and challenging for users to operate, leading to frustration and reduced satisfaction with Samsung Smart TVs as a whole.

To tackle this issue, Samsung embarked on a user research journey. They conducted in-home studies, usability tests, and gathered extensive user feedback through surveys and interviews. The research highlighted that users valued simplicity and ease-of-use above additional functions. Many users felt overwhelmed by the numerous buttons and desired a more streamlined experience.

Armed with these insights, Samsung redesigned their remote, significantly reducing the number of buttons and introducing a more intuitive layout. The result was a user-friendly remote that enhanced the overall Smart TV experience, leading to higher customer satisfaction and increased sales. This case underscores the critical role that user research plays in identifying pain points and driving meaningful design improvements.

Case Study 2: PayPal’s Mobile App Redesign

PayPal, a leader in online payments, recognized that their mobile app’s user interface was not meeting the user expectations for ease-of-use, leading to lower engagement and frequent drop-offs during key transactions. To address this, PayPal committed to a thorough user research initiative.

The company employed a combination of ethnographic studies, A/B testing, user interviews, and analytics review to gather deep insights into user behaviors and experiences. A significant finding was that users wanted faster access to core functions like sending money, checking balances, and viewing transaction history without navigating through cumbersome menus.

PayPal’s design team utilized these insights to revamp the mobile app interface. They introduced a minimalist design that prioritized core functionalities on the home screen, simplified navigation, and incorporated new features based on user feedback. The redesign resulted in a more intuitive, engaging, and efficient user experience, which was reflected in a substantial increase in user engagement and completed transactions.

Conclusion

These case studies illustrate the profound impact user research can have on the design and overall success of a product. It enables designers to create solutions that truly resonate with users by addressing their real needs and eliminating pain points. User research is not just a checkbox in the design process; it is an essential strategic component that informs, inspires, and validates design decisions. As technology and user expectations continue to evolve, investing in user research will remain a critical practice for any organization committed to delivering exceptional user experiences.

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: Unsplash

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Blockchain and Innovation

Beyond Cryptocurrency

Blockchain and Innovation - Beyond Cryptocurrency

GUEST POST from Chateau G Pato

Blockchain technology, most commonly associated with cryptocurrencies like Bitcoin, has far-reaching applications that extend beyond the realm of digital currencies. As a human-centered change and innovation thought leader, I will explore how blockchain technology is redefining various industries, driving efficiency, transparency, and trust. In this article, we will examine two case studies that showcase the transformative potential of blockchain: Supply Chain Management and Healthcare.

Case Study 1: Transforming Supply Chain Management

In the intricate world of supply chain management, where product authenticity, tracking, and operational efficiency are paramount, blockchain technology has emerged as a game-changer. By creating an immutable and transparent digital ledger, blockchain provides end-to-end visibility and traceability, revolutionizing how supply chains operate.

Example: Walmart and IBM’s Food Trust Blockchain Platform

Walmart, in collaboration with IBM, has implemented a blockchain-based platform called Food Trust to enhance food safety and traceability. The traditional system of tracking produce and other products through paper-based or siloed digital records was time-consuming and prone to errors. With blockchain, all stakeholders, including farmers, processors, distributors, and retailers, have access to a unified and tamper-proof record of information.

In one notable instance, the time taken to trace the source of mangoes in Walmart’s supply chain was reduced from seven days to merely 2.2 seconds. This significant improvement not only enhances food safety by swiftly identifying contamination sources but also builds consumer trust by providing transparent product information.

Case Study 2: Revolutionizing Healthcare

Healthcare systems worldwide grapple with issues of data security, patient privacy, and interoperability. Blockchain technology addresses these challenges by offering a decentralized platform for securely managing and sharing medical data.

Example: MedRec—Patient-Centric Health Records

MedRec, an MIT-affiliated project, is leveraging blockchain to create a patient-centric electronic health record (EHR) system. Traditional EHR systems are often fragmented and controlled by various entities, leading to inefficiencies and limiting patient access to their own health records. MedRec uses blockchain to aggregate medical data from multiple sources into a single, decentralized ledger that is accessible to patients and authorized healthcare providers.

This approach enhances data interoperability, reduces administrative burdens, and, most importantly, empowers patients by granting them complete control over their own health records. The blockchain ensures that all health data is secure, tamper-proof, and easily transferable among different providers, furthering seamless continuity of care.

Conclusion

Blockchain technology’s potential extends well beyond cryptocurrencies, offering groundbreaking solutions to complex challenges in various industries. The case studies of Walmart’s Food Trust and MedRec demonstrate how blockchain can drive innovation, enhance transparency, and build trust in supply chain management and healthcare. As we continue to explore and harness the power of blockchain, it is evident that this technology will play a crucial role in shaping the future of numerous fields, propelling us towards a more efficient and trustworthy 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

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10 Clever Ways to Stop Ideation Bullies from Hogging Your Brainstorming Sessions

10 Clever Ways to Stop Ideation Bullies from Hogging Your Brainstorming Sessions

GUEST POST from Howard Tiersky

Whether you’re responsible for digital transformation or just trying to improve a product, process or marketing program, coming up with ideas is almost always an important part of success.

And one way you can create ideas is by bringing everyone together in some sort of brainstorming activity.

But sometimes you find that you’ve invited someone who’s not going to let anyone else talk — someone who is so certain they have the right answers that they take all the oxygen in the room — the ideation bully.

The Ideation Bully has an idea of how “it” should be done and they are so insistent about it that it’s almost not worth having a session because nobody has the energy or the desire to fight with this person.

Fortunately, there are certain tactics that you can use to diffuse the problem and prevent those troublemakers from throwing a monkey wrench into everything you’re trying to do.

Here are 10 ways to Handle Ideation Bullies

1. Choose your Brainstormers

One option is to simply not invite somebody who is known to be a troublemaker if you predict that that person is going to tank the effort to bring people together and generate ideas.

If their ideas are important, there’s always an opportunity to give them input in another way, such as asking them to send you a list of their ideas.

But there can be downsides to this as your primary approach. If that person is politically very important, then excluding them may not be wise.

Additionally, that individual may actually have good ideas to contribute, it’s just that they have a habit of “over-contributing.”

And lastly, sometimes you don’t know in advance who will show up as an “ideation bully.”
Someone who is otherwise quite reasonable and collaborative may get “triggered” by a given topic and transform into a problem.

2. Align on the Goals of the Meeting

Sometimes people who are trying to throw out ideas and who are behaving like bullies aren’t on the same page of what you’re there to ideate about.

Focus on what you want to accomplish and make sure everyone understands what the definition of victory is.

Set some ground rules so that if people start to pull you off topic, you can call them out while still being respectful of the point that they’re making.

3. Leave Rank at the Door

It’s best if the most senior person in the room lets everybody know that we really want everyone’s ideas and definitely doesn’t use their rank to influence the discussion (once all the ideas are on the table they can always later use their position of authority to determine which ideas will be implemented).

In fact, we have a fun acronym we use to highlight this challenge: HIPPO (Highest Paid Person On-hand).

Of course, not just because you’re the highest paid person doesn’t necessarily mean you’re a bully.

But you can be if you come in there and prevent your team from generating a lot of ideas.

It’s a good idea if the HIPPO speaks last because once they’ve spoken, it can be hard for people to feel like they should contradict.

Another strategy is to have the senior person wait for everyone to finish the session and then just bring them the results of the meeting to assess.

4. Insight Before Ideas

You want to seed people with information beforehand.

One way that people bully during ideation is they come in with supposedly their own set of facts, which may or may not really be facts.

It’s very easy to bully people with fake facts when others don’t have them.

You’re not going to have every insight, every piece of information, but nevertheless thinking about what’s the key information that the group should be fed in advance will help neutralize the ideation bullies.

5. Define the Goal of Generating a Set Number of Ideas

Acknowledge that your goal is to create a whole bunch of different ideas so that you can later assess them.

So when the ideation bully comes, they won’t be able to drown out everybody else because you are compelled to keep going until you get your target number of ideas.

You can always assure the bully that if their ideas are really the best, then you’ll probably wind up picking it.

6. The Possibility Frame

You can always say to somebody, is it possible there’s another idea?

Is it possible there’s a better idea?

Is it possible there’s a way of improving on this idea?

And it’s very difficult even for a bully to say absolutely not.

They just have to basically be willing to down-and-out insult every single person in the room if they want to say there’s no one there that could possibly come up with an idea that’s better than that.

Usually in most corporate environments, someone is not going to go that far.

When you can acknowledge that it’s always possible that there’s another idea, a better idea, or a way of improving the idea, then you have diffused the bully’s ability to crowd out other ideas.

7. The Hypothesis Frame

Any idea is just a hypothesis. It’s just a theory that it might be the solution to a problem.

So whatever idea you have, you don’t know for sure that it’s going to work until you test it through some kind of market research.

When you accept the hypothesis frame, the bully will not be able to shut down other ideas without presenting informational points that suggest their own idea is the best solution.

8. Evidence Quantity per Idea

Identify all the data and see how much evidence we have for each idea.

Sometimes the bully has a strong opinion that their idea is the right answer even when they have no data to support that claim.

We have a fun acronym for those sub variety of ideation bullies as well. We call them the ZEBRAs (Zero Evidence But Really Arrogant).

We want to give ZEBRAs the opportunity to present their facts but also do the same for other ideas.

This helps you prioritize and evaluate the ideas that your team generates.

9. Use Breakouts to Avoid Filibusters

When you have 10, 15, 20 or even more people that are ideating, it can be good to break them into teams and let each team brainstorm separately.

They can later come back together and each team can share what they’ve come up with.

That can be a healthy way of ideating if you have somebody who tries to bully everybody not follow the rules.

At least if you put them in breakouts, they can only do that with part of the group.

It may not solve the problem 100%, but at least then you have groups which don’t have that person and therefore can be productive.

Hopefully, some of these other strategies will help manage that person in the breakout that they’re in.

10. Create Structures with Timing and Turns

Instead of just having a freewheeling conversation, there’s this structure where everyone waits their turn and has their say.
But then there’s a process of making sure that that’s timeboxed and we move on to the next person.

That’s another way of making sure that each person gets their time and that the person who otherwise would want to take over and dominate will find it harder to bully everybody because there are rules.

You don’t need all of those tactics. You can pick just a few, even depending on your situation.

And I’m confident that you will find that you can master handling ideation bullies so that they can potentially still have their say, but it doesn’t disrupt everything you’re trying to do in terms of coming up with great ideas.

Check out my Wall Street Journal bestselling book, Winning Digital Customers, where I go into great length on a wide range of ideation practices in the context of product development and the creation of great customer experiences. It will show you the step-by-step process for coming up with ideas that lead to successful products in the market. You can download the first chapter for free by clicking this link https://WinningDigitalCustomers.com.

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Key Performance Indicators for Innovation

What to Measure

Key Performance Indicators for Innovation

GUEST POST from Chateau G Pato

Innovation is crucial for sustaining growth, competitive advantage, and relevance in today’s fast-paced market landscape. However, managing innovation can be elusive without clear metrics and indicators. Identifying and tracking Key Performance Indicators (KPIs) is essential for steering your innovation efforts in the right direction. In this article, I will discuss effective KPIs for innovation and illustrate their application through two compelling case studies.

Why KPIs Matter for Innovation

KPIs act as signposts that direct an organization’s innovation initiatives. They provide measurable evidence of progress and help leaders make informed decisions. The right KPIs can foster a culture of innovation, hold teams accountable, align efforts with strategic objectives, and ultimately, drive successful outcomes.

Key Performance Indicators for Innovation

Here are some essential KPIs you should consider when measuring innovation:

  • Number of New Ideas Submitted: Measures the volume of innovative ideas generated within the organization.
  • Idea Conversion Rate: Tracks the percentage of submitted ideas that make it through to implementation.
  • Time to Market: Measures the duration from idea conception to market launch, reflecting the efficiency of the innovation process.
  • Revenue from New Products/Services: Indicates the financial impact of innovation efforts by tracking earnings from newly launched offerings.
  • Customer Satisfaction and Adoption Rates: Measures how well the new products or services are received by the target market.
  • R&D Spend as a Percentage of Revenue: Gauges the investment in research and development relative to the company’s overall revenue.

Case Studies

Case Study 1: Google

Google is renowned for its innovative culture and continuous product evolution. Here’s how they leverage KPIs:

  • Number of New Ideas Submitted: Google encourages a culture of idea submission through its “20% time” policy, empowering employees to spend 20% of their time on innovative projects. This KPI helps Google measure its creative pipeline.
  • Idea Conversion Rate: Google’s X (formerly Google X) division focuses on moonshot projects. Out of numerous ideas, only a select few, like Waymo and Loon, get converted and scaled. Tracking this conversion rate ensures that only the most promising ideas get resources.
  • Time to Market: By measuring the time from concept to launch, Google ensures that innovative products reach consumers quickly. For example, the rapid development and deployment of Google Meet during the COVID-19 pandemic showcased this KPI in action.
  • Revenue from New Products/Services: Alphabet, Google’s parent company, closely monitors the revenue generated from new ventures like Google Cloud, which shows the financial fruitfulness of its innovation efforts.

Case Study 2: 3M

3M is an iconic innovator, known for products like Post-it Notes and Scotch Tape. Here’s a look at their KPIs:

  • R&D Spend as a Percentage of Revenue: 3M allocates approximately 6% of its revenue to research and development. This KPI underscores their commitment to continuous innovation.
  • Revenue from New Products/Services: 3M tracks the percentage of sales from products launched in the past five years, aiming for 30%. This helps them understand the impact of recent innovations on their bottom line.
  • Customer Satisfaction and Adoption Rates: Customer feedback is integral to 3M’s innovation process. They measure satisfaction and adoption rates to ensure that new products meet or exceed customer expectations.
  • Number of Patents Filed: 3M files over 3,000 patents yearly. This KPI reflects their innovative output and secures intellectual property to protect and leverage their inventions.

Conclusion

Measuring innovation is not a one-size-fits-all approach. The KPIs you choose should align with your strategic objectives and organizational culture. By implementing effective KPIs and learning from examples set by industry leaders like Google and 3M, you can better manage your innovation efforts and drive sustainable growth.

Remember, the key is to balance quantitative metrics with qualitative insights to get a holistic view of your innovation process. With the right KPIs, you’ll be better equipped to navigate the complex terrain of innovation and achieve success.

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

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Importance of Long-Term Innovation

Importance of Long-Term Innovation

GUEST POST from Greg Satell

Scientists studying data from Mars recently found that the red planet may have oceans worth of water embedded in its crust in addition to the ice caps at its poles. The finding is significant because, if we are ever to build a colony there, we will need access to water to sustain life and, eventually, to terraform the planet.

While it’s become fashionable for people to lament short-term thinking and “quarterly capitalism,” it’s worth noting that there are a lot of people working on—and a not insignificant amount of money invested in—colonizing another world. Many dedicate entire careers to a goal they do not expect to be achieved in their lifetime.

The truth is that there is no shortage of organizations that are willing to invest for the long-term. In fact, nascent technologies which are unlikely to pay off for years are still able to attract significant investment. The challenge is to come up with a vision that is compelling enough to inspire others, while still being practical enough that you can still make it happen.

The Road to a Miracle Vaccine

When the FDA announced that it was granting an emergency use authorization for Covid-19 vaccines, everybody was amazed at how quickly they were developed. That sense of wonder only increased when it was revealed that they were designed in a mere matter of days. Traditionally, vaccines take years, if not decades to develop.

Yet appearances can be deceiving. What looked like a 10-month sprint to a miracle cure was actually the culmination of a three-decade effort that started in the 90s with a vision of a young researcher named Katalin Karikó, who believed that a molecule called mRNA could hold the key to reprogramming our cells to produce specific protein molecules.

The problem was that, although theoretically once inside the cytoplasm mRNA could instruct our cell machinery to produce any protein we wanted, our bodies tend to reject it. However, working with her colleague Drew Weissman, Karikó figured out that they could slip it past our natural defenses by slightly modifying the mRNA molecule.

It was that breakthrough that led two startup companies, Moderna and BioNTech to license the technology and for investors to back it. Still, it would still take more than a decade and a pandemic before the bet paid off.

The Hard Road of Hard Tech

In the mid-90s when the Internet started to take off, companies with no profits soon began attracting valuations that seemed insane. Yet the economist W. Brian Arthur explained that under certain conditions—namely high initial investment, low or negligible marginal costs and network effects—firms could defy economic gravity and produce increasing returns.

Arthur’s insight paved the way for the incredible success of Silicon Valley’s brand of venture-funded capitalism. Before long, runaway successes such as Yahoo, Amazon and Google made those who invested in the idea of increasing returns a mountain of money.

Yet the Silicon Valley model only works for a fairly narrow slice of technologies, mostly software and consumer gadgets. For other, so-called “hard technologies,” such as biotech, clean tech, materials science and manufacturing 4.0, the approach isn’t effective. There’s no way to rapidly prototype a cure for cancer or a multimillion-dollar piece of equipment.

Still, over the last decade a new ecosystem has been emerging that specifically targets these technologies. Some, like the LEEP programs at the National Laboratories, are government funded. Others, such as Steve Blank’s I-Corps program, focus on training scientists to become entrepreneurs. There are also increasingly investors who specialize in hard tech.

Look closely and you can see a subtle shift taking place. Traditionally, venture investors have been willing to take market risk but not technical risk. In other words, they wanted to see a working prototype, but were willing to take a flyer on whether demand would emerge. This new breed of investors are taking on technical risk on technologies, such as new sources of energy, for which there is little market risk if they can be made to work.

The Quantum Computing Ecosystem

At the end of 2019, Amazon announced Braket, a new quantum computing service that would utilize technologies from companies such as D-Wave, IonQ, and Rigetti. They were not alone. IBM had already been building its network of quantum partners for years which included high profile customers ranging from Goldman Sachs to ExxonMobil to Boeing.

Here’s the catch. Quantum computers can’t be used by anybody for any practical purpose. In fact, there’s nobody on earth who can even tell you definitively how quantum computing should work or exactly what types of problems it can be used to solve. There are, in fact, a number of different approaches being pursued, but none of them have proved out yet.

Nevertheless, an analysis by Nature found that private funding for quantum computing is surging and not just for hardware, but enabling technologies like software and services. The US government has created a $1 billion quantum technology plan and has set up five quantum computing centers at the national labs.

So if quantum computing is not yet a proven technology why is it generating so much interest? The truth is that the smart players understand that the potential of quantum is so massive, and the technology itself so different from anything we’ve ever seen before, that it’s imperative to start early. Get behind and you may never catch up.

In other words, they’re thinking for the long-term.

A Plan Isn’t Enough, You Need To Have A Vision

It’s become fashionable to bemoan the influence of investors and blame them for short-term and “quarterly capitalism,” but that’s just an excuse for failed leadership. If you look at the world’s most valuable companies—the ones investors most highly prize—you’ll find a very different story.

Apple’s Steve Jobs famously disregarded the opinions of investors, (and just about everybody else as well). Amazon’s Jeff Bezos, who habitually keeps margins low in order to increase market share, has long been a Wall Street darling. Microsoft invested heavily in a research division aimed at creating technologies that won’t pan out for years or even decades.

The truth is that it’s not enough to have a long-term plan, you have to have a vision to go along with it. Nobody wants to “wait” for profits, but everybody can get excited about a vision that inspires them. Who doesn’t get thrilled by the possibility of a colony on Mars, miracle cures, revolutionary new materials or a new era of computing?

Here’s the thing: Just because you’re not thinking long-term doesn’t mean somebody else isn’t and, quite frankly, if they are able to articulate a vision to go along with that plan, you don’t stand a chance. You won’t survive. So take some time to look around, to dream a little bit and, maybe, to be inspired to do something worthy of a legacy.

All who wander are not lost.

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

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Green Technology Innovations for a Sustainable Future

Green Technology Innovations for a Sustainable Future

GUEST POST from Art Inteligencia

As the planet faces unprecedented environmental challenges, the need for innovative green technologies has never been more urgent. These technologies not only aim to reduce our carbon footprint but also strive to create a more sustainable and resilient future.

Case Study 1: Tesla – Revolutionizing Electric Vehicles

Tesla Inc., under the visionary leadership of Elon Musk, has transformed the automotive industry with its cutting-edge electric vehicles (EVs). Tesla’s commitment to green technologies is evident in their consistent pursuit of sustainable transportation solutions.

Innovation and Impact

By focusing on electric vehicles, Tesla has propelled the EV market into the mainstream. Their innovative battery technology extends the driving range and reduces charging times. The Gigafactories, which produce both batteries and vehicles, are powered by renewable energy, exemplifying a closed-loop manufacturing process.

Challenges and Solutions

Despite facing challenges such as high production costs and the need for widespread charging infrastructure, Tesla has remained resilient. They invest heavily in R&D to continually improve battery efficiency and expand their Supercharger network, making EVs more accessible and convenient.

Case Study 2: Vertical Farming – Urban Agriculture Revolution

Vertical farming is an innovative approach to agriculture that involves growing crops in vertically stacked layers. This method holds promise for addressing food security and reducing the environmental impact of traditional farming.

Example: AeroFarms

AeroFarms, a leader in the vertical farming industry, uses aeroponic technology to grow leafy greens in urban environments. This soil-free method uses 95% less water than conventional farming and is free from pesticides.

Innovation and Impact

By situating farms close to urban centers, AeroFarms reduces the need for long transportation routes, thereby cutting carbon emissions. Their controlled indoor environments allow for year-round production, optimizing resource use and ensuring a steady supply of fresh produce.

Challenges and Solutions

The high initial costs of setting up vertical farms and ensuring energy efficiency are significant barriers. AeroFarms addresses these by leveraging renewable energy sources and seeking innovative financing models to make vertical farming scalable and economically viable.

Conclusion

Green technologies hold the key to a sustainable future. Through the strategic application of innovative solutions, companies like Tesla and AeroFarms demonstrate that it is possible to balance environmental stewardship with economic growth. As we continue to face pressing global challenges, investing in and supporting such transformative technologies will be crucial in shaping a more sustainable world.

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

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