Category Archives: Strategy

Scaling Local Food Revival with a Business Model Innovation

Business Model Innovation Taken for a Spin by Zaycon Foods

There is no doubt that people are becoming more interested in where their food came from and with meat prices rising (especially here in the United States with widespread drought in some areas) people are also becoming more concerned with the cost.

Like a blast from the past, when neighbors used to get together and buy a side of beef together and have a butcher carve it up so they could stash it in their respective freezers, Zaycon Foods has come along with a business model innovation and introduced a Farm->Truck->You food distribution system for some types of meat and produce, bypassing several layers of warehousing, truck shipment, and unnecessary waiting time.

Here is a video describing their business model innovation for a spin using chicken as an example:

But it is not just chicken that they offer at their buying events. They also offer 93/7 lean ground beef, premium bacon, ribs, hot dogs, ham, and even seasonal produce straight to the trunk of your car. The benefits of the business model innovation are numerous:

  • Lower prices
  • Fresher food (no waiting steps in the process)
  • No food waste (which is part of the reason retailer’s charge more)

Now operating in 48 states to 1,000+ locations here in the United Sates and a growing favorite of churches, and other group purchasers, neighbors are now banding together and doing a scaled down version of sharing a side of beef (or, um, chicken).

What do you think? Is this an innovation or not?

P.S. They did win the first annual Post Harvest Waste Innovation Award from The Post Harvest Project (TPHP), a nonprofit organization founded in 2012 through the support of The Clinton Global Initiative.

Source: The Seattle Times


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Announcing the Crowd Computing Revolution

Designing Work for Man and Machine to Do Together

by Braden Kelley

Announcing the Crowd Computing RevolutionI am proud to bring you a downloadable PDF of a piece I created on The Crowd Computing Revolution and the redesign of work that is now possible thanks to new technology tools and business architecture thinking that will allow man and machine to work more efficiently together than ever before.

Anyone who has read even one or two science fiction books or watched one or two SciFi movies inevitably finds themselves dreaming of a day when machines will free of us of some of the mundane tasks in our lives. Companies dream of this too. Witness the eagerness of companies to outsource entire job functions (or even more recently whole business processes) to third parties either onshore or offshore. Hackers and spammers have become quite adept at programming their machines to send emails to people or attempt to break through security around the clock, around the globe. We have built automated factories, interactive voice response systems, and devised all kinds of ways to put machines to work for us.

Roger Martin, Dean of the Rotman School at the University of Toronto has a simple framework from his treatise on Design Thinking titled The Design of Business, that shows how as we learn more about a knowledge (or work) area, our understanding and abilities allow us to move the piece of knowledge (or work) from something that is mysterious and performed in an ad hoc way by experts, to a level of maturity where we start to observe the patterns (or heuristics) in the knowledge area (or piece of work), to a stage where the work or knowledge is well-understood and can be reduced to an algorithm (or set of best practices) performed by lower skilled employees, and possibly even implemented as a piece of code to be executed by a robot or computer.

Knowledge Funnel

Source: The Design of Business by Roger Martin

But, as alluded to earlier, companies have not only become more comfortable with designing work to be executed by machines instead of employees, but also more amenable to many different sizes and shapes of work being completed by people outside the organization, including:

  1. Entire job functions (Contractors or Outsourcing Firms – Global Outsourcing Market was $95 Billion in 2011)
  2. Whole business processes (Business Process Outsourcing (BPO) Firms – 2011 Market in excess of $11 Billion)
  3. Projects or initiatives (Outside Consultants)
  4. Discrete tasks (99Designs, Crowdspring, etc.)
  5. Micro tasks (Amazon Mechanical Turk, etc.)

Task and Micro-Task Division

Task and Micro-task Division

Over time the human race has moved from building simple machines that function as tools (like a forklift), allowing a man to do more with the help of the machine, to building machines and robots capable of completing a whole task (like painting a car or making an exact copy of a document). Has anyone seen a help wanted advertisement for a scribe lately? Meanwhile, our fully automated manufacturing and packaging plants use machines to complete an entire process. But machines aren’t suitable for every kind of work. They are appropriate for tasks that are well-defined and repeated continuously as part of a standardized process, but not a proper fit for tasks where judgment is required, particularly tasks with numerous exceptions, variability, or personalization.

As a result, typically machines and robots have been relegated most often to the production areas of a business, places where it has been easy to define specific tasks or even whole processes that can be designed for machines or robots to own and complete 24/7/365 if necessary.


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Rethinking Who (or What) Does the Work

Crowd Computing Part 2Rise of the Crowd

There is another growing trend that is now rivaling the growing power of robotics and automation – crowdsourcing. It all started with prizes like The Longitude Prize, but now thanks to the power of the Internet, companies and individuals all around the world are breaking down their projects and processes and tapping into the power of the crowd using loosely-organized, non-employee workforces like Amazon’s Mechanical Turk to execute micro-tasks, getting whole tasks completed through sites like Top Coder and Crowdspring, or calling upon the crowd to solve difficult challenges using sites like Innocentive, NineSigma, and Idea Connection. Sites like these enable organizations to access knowledge, expertise, perspectives, or capacity that they don’t currently have in their organization (or to possibly to get a task or challenge completed at a lower cost). Check out my white paper Harnessing the Global Talent Pool to Accelerate Innovation to learn more about this topic and some of the strategies for successfully leveraging external talent.

Rise of the Business Architect

Our organizations face an innovation imperative amidst intensifying competition that is forcing an increasing number of industries to become commoditized. This increasing need for a sustained level of innovation and a requirement for innovation to be a repeatable and sustainable activity, has led to an increasing number of organizations to consciously design their approaches to the new businesses that they enter. This has led to the growth of two new business disciplines – business architecture and social business architecture.

NIH Business Architecture

Source: National Institute of Health

Business Architecture, according to Wikipedia, is “a modern technology-oriented business occupation…. Working as a change agent with senior business stakeholders, the business architect plays a key part in shaping and fostering continuous improvement and business transformation initiatives. Business architects lead efforts aiming at building an effective architecture for the business process management (BPM) projects that make up the business change programme. The business architect implements business models that require business technology to work effectively.”

Social Business Intersections Social Business Connections

Social Business Architecture on the other hand, facilitates and optimizes the group dynamics and interactions inside the organization, and Social Business Architects specialize in identifying the different parts of an organization that need to interact with groups of people outside the organization, how those parts of the organization should work together to communicate with people outside the organization, and help to identify and implement communications solutions that connect the organization with the target groups so that a meaningful connection and conversation can be built, and then helps to manage the conversations and the information and learnings from their outcomes for the benefit of the organization.

Social Business Attraction Social Business Engagement

Few organizations employ or are even yet aware of the need for Social Business Architects, but there are an increasing number of help wanted postings for Business Architects. This is because not only do organizations recognize the need to architect their new lines of business for maximum efficiency and to , but also because there are so many different ways that work can be executed (employees, contractors, consultants, outsourcing, business process outsourcing (BPO), crowdsourcing, and micro-task execution, that for maximum efficiency it now increasingly requires someone to investigate all of the options, break down the work to be done into jobs, projects and processes, tasks and microtasks so that the right resources can be hired, contracted, briefed, or otherwise engaged to ensure that everything is completed as quickly and as cheaply as possible.

A Guide to Open Innovation and Crowdsourcing

Investigating Examples of Crowd Computing

The Crowd Computing Revolution - Part ThreeMoving from The Design of Business to Redesigning Work

Business Architects have the opportunity to plan for the organization how work can move from mystery to heuristics to algorithms to code. Business Architects (or people filling this role in an organization) have the opportunity to redesign work in the most efficient way possible to leverage both man and machine to get the work done at the lowest cost possible. Technology now exists to allow Business Architects and managers to move beyond allocating work on a job, project, or process basis, and instead design flexible workflows that combine the use of humans and machines to complete the tasks that they are best suited for, or even for humans to augment the work of machines.

For example, imagine that you work in the purchasing department at a large multinational and every month you receive hundreds or thousands of invoices from suppliers all over the world in all different kinds of formats – electronic, mailed paper invoices, PDFs, scanned paper invoices, and even faxed invoices. Your job as purchasing (or accounts payable) manager is to track all of the invoices that you receive, get them entered into your ERP system, and ultimately make sure that they get paid. You can hire or use an existing employee or contractor to manually key them all in, or sign a big dollar outsourcing deal sufficient to support the hiring, training, and management of offshore resources by the outsourcer, or you could try and use OCR software to do the job, but it would fail because of the great deal of variability in both the input sources and formatting of the documents and you’ll end up needing human resources to interpret the OCR output anyways.

Crowd Computing Invoice Processing Example

Or, you could examine the workflow of the process and identify which micro-tasks humans are best suited to perform and which micro-tasks machines are most efficient and cost-effective at performing. Then assign the right micro-task to the right resource. In the case of human resources, this could be an employee, a contractor, an external expert, or even a resource you don’t even know or control (via a crowd workforce like Amazon Mechanical Turk, Elance, etc.). And finally for each micro-task, assign a level of confidence in the quality of the assigned resource’s output and a define a process for grading it. In situations where you have a high level of confidence in the micro-task’s output quality, you can move directly on to the next micro-task in the workflow, but if you have a low level of confidence in a particular micro-task output performed by a machine, assign an alternate process to validate that output (such as using someone via Amazon Mechanical Turk to validate that “yes, this is a purchase order number”).

But that is not all that is possible these days. It is now possible for systems that facilitate the management of this kind of atomized work structure definition and workflow management and assignment, like those from Crowd Computing Systems, to also use artificial intelligence to both learn from the corrections that humans are making to a machine-driven, micro-task execution to get more accurate in the future, but also to learn how to do micro-tasks that humans are currently performing without machine assistance and to help identify the best performing crowd resources to inform work allocation decisions and to perform overall output quality optimization.

Conclusion

In much the same way that outsourcing felt awkward 20-25 years ago and Business Process Outsourcing (BPO) felt foreign a decade ago, the time has come for crowd computing to begin to be a tool that managers and Business Architects can keep in their toolbox to better allocate work across man and machine. The time is now for man and machine to work together in ways that they never have before, and to learn from each other. The time has come for businesses and work to not just be operated and executed, but designed for maximum efficiency. Should we be afraid as workers that the machines are going to take away our jobs and leave us with nothing to do?

No. In much the same way that tractors and steam shovels began freeing man and beast from back breaking work nearly two hundred years ago, there are many benefits for man to gain from the crowd computing revolution – the biggest being freedom from an increasing amount of mind numbing work. Organizations that embrace crowd computing stand to gain not only to potentially lower processing costs for many high volume processes, but also will benefit from acquiring the ability to reassign analysts and other highly-skilled and trained employees to higher value work – better leveraging their existing human resources while simultaneously increasing employee satisfaction, retention, and knowledge creation in the enterprise. Are you ready for the crowd computing revolution?

Click Here to Download The Crowd Computing Revolution PDF

Sources:

http://speakology101.com/welcome/2012/05/21/break-it-down-tasks-sequencing/
http://www.huffingtonpost.com/martin-ford/job-automation-is-a-futur_b_832146.html
http://www.statista.com/statistics/189788/global-outsourcing-market-size-since-2000/
http://www.rediff.com/business/report/bpo-market-to-be-worth-14-bn-in-2011/20110412.htm


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Stoking Your Innovation Bonfire – The Slideshare

I’ve uploaded a sample chapter of my highly-rated popular book Stoking Your Innovation Bonfire from John Wiley & Sons to Slideshare. Stoking Your Innovation Bonfire is a great book focused on helping organizations identify and remove barriers to innovation, but also serves as a great innovation primer for organizations beginning their innovation journey and looking to establish a common innovation language across the organization.


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Stoking Your Innovation Bonfire is available on the various Amazon sites around the world and at other fine booksellers and public libraries.

You can buy the book in bulk here:

You can download Stoking Your Innovation Bonfire in digital form here:

You can probably check out the book from your local library (or request it):

Or you can buy a traditional paper copy of Stoking Your Innovation Bonfire here:

Thousands of people around the world have already purchased, downloaded, or checked out their copy of Stoking Your Innovation Bonfire and enjoyed the easy, but valuable read, and I hope you will too.

Keep innovating!


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Are Coca-Cola and Green Mountain Late to the Personalization Party?

Are Coca-Cola and Green Mountain Late to the Personalization Party?Recently I came across an announcement that Coca-Cola is partnering with Green Mountain Coffee Roasters to sell Coke products as part of Green Mountain’s new home beverage system slated for a release later this year. For those of you who aren’t familiar with Green Mountain, they make the popular Keurig in-home single-serving coffee machine (which became a popular home and office item after Nespresso’s patents expired). Now they want to expand their in-home beverage machine product line to include cold beverages. What is not clear in the press release is which of Coke’s products will be available with this new beverage system.

Will it only be beverages like Minute Maid juices, Powerade, Vitaminwater and non-carbonated beverages in their portfolio?

Or will it include the Coca-Cola crown jewels – Coke, Diet Coke, Sprite, etc.?

The only thing that is mentioned is that the system will not contain a carbon dioxide cylinder that needs to be changed periodically (something the Sodastream system requires).

So, what is driving Coca Cola to pursue this $1.25 Billion investment in Green Mountain Coffee Roasters in search of innovation?

Well, there are many different reasons why companies seek to innovate.

In Level 1 of the Global Innovation Certification we refer to this as Innovation Intent, and I am currently recording the fifth video module from two full days of live certification training materials for the Level 1 Innovation Certification eLearning, and this video module happens to be about innovation intent.

Some of the reasons that companies look to innovate can of course include:

  1. An ambitious leader
  2. A changing regulatory environment
  3. A changing competitive environment
  4. A desire for new growth opportunities
  5. Faltering company financials (burning platform)
  6. A need for competitive response
  7. Requests from customers
  8. Recognized new supplier capabilities
  9. Demands from shareholders
  10. Requests from passionate employees
  11. INSERT YOUR REASON HERE

Coca Cola FreestyleSo what is going on here for Coca-Cola?

Well, competitor Sodastream recently splashed out $4 million for a Super Bowl advertisement (during a game that our local Seattle Seahawks won) and has been growing steadily (while still small compared to Coca-Cola). But it does have a market cap of $780 Million and a growing fan base. But, at the same time, Coca-Cola is investing $1.25 Billion for 10% of Green Mountain Coffee Roasters. Why are they investing more than $1 Billion in this interesting, but still comparatively small segment of the beverage business?

Is this a smokescreen move, announcing a product that may never see the light of day, in order to dent the growth of an emerging competitor?

Is it a competitive response, a hedge, with a me-too product in case the home soda bottling movement continues to grow?

Is it just a logical doubling down for Coca-Cola in a belief that the beverage personalization trend has not exhausted itself yet, and building upon the success of the Coca-Cola Freestyle and the groundwork that Sodastream has done to seed the market for Coke?

Or has Green Mountain Coffee Roasters, with its massive distribution channels (in comparison to Sodastream), brought Coca-Cola something that truly represents an innovation in the beverage system market versus the Sodastream offering that might result in people switching and both gaining back market share for Coke in their core markets, while also potentially representing an opportunity for some of their less successful brands to gain traction in a space where they don’t have competition from Pepsi?

This of course would be the more interesting of the strategic undertones, and the one in which Pepsi, not Sodastream should be the most worried.

Because after all, in the minds of Coca-Cola executives, it is Pepsi that they are always most worried about, not someone like Sodastream, and anything that allows them to potentially steal market share from Pepsi, makes them very happy indeed.

What are the motivations behind this move and partnership, which direction will all of it go, and is there any real innovation happening here?

And what will Pepsi do?

I guess we will have to wait and see.

Meanwhile, ask yourself what your innovation intent is, and…

Keep innovating!


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Changing Business Models Around

Changing Business Models AroundSome business models and products have been around so long that we just take them for granted, while others concepts that are becoming new business models are so new that we’re not quite sure what to expect. It is probably easiest to explain what I mean and why this juxtaposition is important by looking at a few examples. Most of these examples involve challenging our orthodoxies.

1. Coffee Shops

In the typical coffee shop pretty much anywhere in the world, the business model works like this – you buy a coffee and it comes along with it the right to take up a place at any table in the café for as long as you want. So, coffee buys you time. An article I came across on NPR highlights an entrepreneur in Moscow that has opened a restaurant that loosely translates to the Clockface Café where instead of buying coffee and getting time, you instead buy time ($4/hr per person for the 1st hour and $2 an hour after that, up to a maximum of $12 after 5 hours) and get coffee for free. Ivan Meetin, the founder, plans to open his next café in London. Meanwhile I have heard of similar operations in Paris, and by now they can probably also be found elsewhere. So, in your business what do people get for free, and what do they pay for? And is there an opportunity to change around what you charge for?

2. Waste Disposal

In many businesses, and in the creation of most products, there is waste. And in most cases, businesses pay to have this waste removed from their premises. Or there may be waste that the customer has to pay to have removed. But this doesn’t always have to be the case.

KFC, McDonald’s, Burger King, etc. used to have to pay to have their used fryer oil picked up, but now thanks to the rise of biodiesel they may even make money from this waste product.

Chicken FeetChicken processors used to throw the feet away after processing a truckload of chickens, but after they discovered that chicken feet are a delicacy in several Asian countries, they stopped throwing them away and instead started exporting them. In fact, chicken feet sell for more per pound than chicken breasts in China.

Broken OREO’s used to have no value before Cookies ‘n’ Cream ice cream (and now Cookies ‘n’ Cream OREO’s) were discovered.

And finally, I came across an example of a bottle cap concept created by designers from the Lanzhou University of Technology in China, intended to give poor children access to building blocks for play, from what was previously thrown away.

Building Caps

3. Discounts for Data

Data security and privacy is becoming an increasingly hot topic, and in the past companies would either ask customers for their data and not give them anything for it, or just not ask for it. But now we are seeing some interesting models of companies asking customers for data and instead giving them something of value in exchange. For example, Urban Outfitters rewards users that respond to promotions inside their mobile app or to users that allow its app to connect to their Twitter or Instagram accounts with points that can be redeemed for sale previews, concert tickets, or early access to new pieces. What data do you want from your customers? What is it worth to you? How could this exchange be made engaging and not be seen as a purely financial transaction?

4. The Soft Drink Category is Saturated and Cold

Soft drinks… How many people out there think that the soft drink category is a blue ocean full of incredible opportunities for unbounded growth for established soft drink makers? Most people would say that this is a mature category and a tough place for companies, full of merciless competition. But yet, people continue to innovate and challenge this orthodoxy. Witness a couple of interesting new concepts.

Shericks ShakesBritain has always been a hotbed of innovation, and the country that brought us Pret a Manger and Innocent smoothies brings us this tasty treat. Mr. Sherick’s Shakes brings people a little bit of luxury to their day in the form of their high quality milkshakes.

Meanwhile in Japan, there is a growing trend manifesting in a wave of product launches in the soft drink category that are not cold, but instead hot. Witness this example of what has always been a cold drink, Ginger Ale, being brought into the Japanese market as a hot beverage by Coca Cola’s Canada Dry unit.

Canada Dry Hot Ginger AlePeople always love something new and different, even if it is something old that has disappeared from the market. This is why fashion runs in cycles, and in a mature category like soft drinks there is no reason why we shouldn’t keep these principles in mind and see if now is the time to bring something back, or to see if there is an orthodoxy that we shouldn’t now look at challenging to see if an opportunity might not be created.

Conclusion

Innovation transforms the useful seeds of invention into widely adopted solutions valued above every existing alternative. Value comes not just from physical invention, or business model innovation, but from psychological and emotional benefits as well and the creation of new psychological or emotional value can happen in any industry at any point in time, no matter how mature the category seems to be. We as humans are strange creatures and we simultaneously fight against change (and hold back innovation as a result) and embrace new things (or at least like to try them). So challenge your patterns of accepted thinking to look for opportunity and work to overcome your beliefs that everything that could be done has been done in your industry.

Keep innovating!


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Cookies ‘n’ Cream Oreos and Chicken Feet

Cookies n Cream Oreos

Chicken FeetNow you might be asking yourself…

What do Cookies ‘n’ Cream Oreos and chicken feet have in common?

In short, both cookies ‘n’ cream and chicken feet involve valuable delicacies that that come from what people previously thought of as waste products from the production of something that was seen as more valuable.

In the United States chicken feet used to be thought of as something that (A) we don’t eat and (B) that American chicken ranchers used to throw away. But in Asia they are a delicacy in several countries, and according to Wikipedia chicken feet sell for more money per kilogram than the chicken breast (the part here in the United States that we think of as the most valuable).

Meanwhile, Cookies ‘n’ Cream ice cream and now Cookies ‘n’ Cream Oreos are now both great ways for Nabisco to take sub par Oreo cookie wafers that might otherwise be thrown away and instead turn them into a valuable product.

In the same way, old fryer oil from places like KFC and McDonald’s used to cost restaurants money to dispose of and now with the demand for BioDiesel, these restaurants can now instead sell their old oil to third parties instead of paying someone to take it away!

So, you have to ask yourself as part of your innovation efforts, are there any waste products or outputs that we don’t think of as valuable that could be turned into something else valuable or that might have value to someone else?


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UPDATE – iPhone 5S mCommerce and Retail Implications

In my previous article on some of the potential implications of the iPhone 5S launch, I talked about how one of the things that wasn’t included in the iPhone 5S that I thought would be, was NFC technology (Near Field Communications).

Or at least I thought that Apple left it out…

That was until I came across this GigaOm article and this FastCoLabs article.

iBeacons mention on WWDC slide

But it turns out that while they left out NFC, they didn’t leave out near field communications technology. They have just implemented in a slightly different way – using iBeacons – Apple’s flavor of Bluetooth Low Energy (BLE) that actually achieves the same basic job as NFC, but in a much more elegant and capable way.

To give you a better idea of what this technology is capable of (in addition to mobile payments), I encourage you to check out the following video about Estimote Smart Beacons:

I truly believe that the kinds of things that will come out of the BLE technology built into the new iPhone 5S in combination with the new fingerprint authentication will represent a quantum leap in the value we extract from our smartphones in much the same way that the AppStore that came along a year after the launch of the original iPhone.

UPDATE - iPhone 5S mCommerce and Retail Implications

It will be interesting to see what develops around the iPhone 5S (and the Android and Windows 8 devices to respond) over the next twelve months.

Keep innovating!

Image credits: GigaOM


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Interview for Top 75 Disruptive Experts Series

Interview for Top 75 Disruptive Experts SeriesAs part of Bill Jensen’s series of interviews with the Top 75 Disruptive Experts from around the globe, I had the opportunity to sit down with Bill and discuss several different questions about disruption in this video interview, including:

  1. Introduction
  2. My Favorite Disruptive Hero
  3. My Value Innovation Framework
  4. My Favorite Disruptive Change
  5. The Disruptive Change I Struggle With

Some of the key points I make in the video are importance of recognizing opportunities and seizing them, the impact of online services on how we all relate to each other and conduct our lives, my view on the key components to creating innovation success, and finally some thoughts on how evolving mobile capabilities are already changing our lives and how mobile will continue to change us (aka the mobile-centered human experience). Hope you enjoy it!

If you would like to schedule an interview with me for your online, television, print, or radio program, please contact me.


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Fingerprints of mCommerce Success on iPhone 5S?

Fingerprints of mCommerce Success on iPhone 5SLast August I wrote about Apple’s pending acquisition of Authentec, a biometric authentication company (which has since closed). At the time Apple was in a real hurry to complete the acquisition and it made me wonder whether Authentec’s fingerprint authentication technology would make it into the home button of the iPhone 5 and eventually into the iPad and the iPad Mini. It didn’t.

But today, as part of the new iPhone 5S, Apple has finally integrated this biometric technology into their flagship mobile phone.

Why does this tiny little sensor represent such a potential sea change for the mobile industry?

Let’s look at all of the ways that this technology addition makes the iPhone more valuable than other phones.

1. Security and Personalization

By integrating the Authentec technology into the iPhone 5S home button, and eventually the iPad and the iPad Mini, Apple can not only create a handy way (no pun intended) to eliminate the need for remembering passwords, but also enable people to make their devices easily personalized for MULTIPLE users of the same device.

But if Apple takes advantage of all the purported abilities of the Authentec technology, the new iPhone 5S may also have the ability to recognize multiple fingers from a single individual, allowing for the home button to potentially achieve multiple functions – like the multiple button mouse.

In practical terms, this means for example that if your five-year-old gets a hold of your iPhone 5S, or you let them have it to keep them occupied in a restaurant, the iPhone 5S could potentially keep them from making phone calls, opening your work emails, etc. or just limit them just to accessing the Apps you grant them access to. But there is also no reason why apps like Netflix could also become personalized based on whose finger was used.

And maybe finally Apple will finally introduce some parental controls on the iPad. It’s maddening as a parent that my only choice on our iPad is to either give my daughter full access to Safari, or no access to Safari and that I have to go in and re-enable Safari when I want to use it. What decade is this? Hopefully iOS 7 will fix this.

2. iTunes and App Store Authentication

For Apple, there are also legal and financial benefits from adding fingerprint authentication, as it will help to prevent (or at least reduce) unauthorized iTunes purchases made by account hackers or children playing with their parent’s iPhone 5S (or upcoming iPad 5). Fingerprint authentication in iPhone 5S and iPad 5 may also encourage people to begin utilizing Apple’s Passport.

3. Universal mCommerce Authentication v1.0

It is embarrassing that the United States is so far behind the rest of the world when it comes to mCommerce. Mostly this has been because the financial services companies (Citibank, Bank of America, Chase, Wells Fargo, American Express, Mastercard, Visa, Verisign, etc.) and mobile phone carriers (Verizon, AT&T, Sprint, T-Mobile, etc.) have been fighting to control mCommerce in the United States to the detriment of United States citizens and consumers and mobile innovation. Shame on you!

The new iPhone 5S might help to reignite mobile innovation and mCommerce activity in the United Sates. And given that Apple makes most of their money selling hardware and are facing a market share challenge from Android and Windows 8 devices, it is in Apple’s best interest to open up a fingerprint sensor API in iOS 7 for third party app developers to utilize. This would maximize the potential differentiation and hardware sales, and the incremental device lock-in offered by this new capability.

But there are also increased revenue opportunities for Apple, as integrated fingerprint authentication is likely to lead to an increase in impulse iTunes and App Store purchases. Why will a fingerprint sensor likely lead to an increase in music and app purchases for Apple? Simple, it will make it easier and faster for people to buy things from iTunes or the App Store, and give consumers less time to change their mind after they get the urge to buy something.

One thing I didn’t see mentioned in Apple’s iPhone 5S announcement was the inclusion of any kind of Near Field Communication (NFC) capability in this latest flagship model. So v1.0 of Apple’s universal mCommerce authentication capabilities may only include authentication of eCommerce purchases made via mobile web sites or mobile apps. Without NFC I’m not sure exactly how authenticated purchases in the physical world would be made, short of a scanner reading a post-authentication-generated QR Code or something like that. Of course there is a way (or several) and mobile innovators surely will find them until NFC is incorporated into future iPhones and iPads.


Build a common language of innovation on your team

4. Universal mCommerce Authentication v2.0

Once NFC capabilities are added to the iPhone, then people like Square, but also traditional banks, and even Google could add iPhone 5S fingerprint authentication to apps for mCommerce for users to download and install on their phone. This represents a HUGE opportunity for Square and a challenge obviously for the established players. It will be interesting to see whether Apple will be the first to integrate fingerprint authentication together with NFC or whether Samsung or someone else will beat them to it, or even whether it might be able to be added via a 3rd party case or backing for the phone. What do you think?

Wrapup

The initial iPhone turned your finger into a more useful tool for the digital world. The new iPhone 5S turns your finger into a key, and how many locks it will help you open remains to be seen. Let’s hope that in the same way that the iPhone broke the stranglehold that the mobile carriers had on application innovation on the handset, the new iPhone 5S will create a new wave of mobile innovation in the mCommerce space.

Let’s hope that Apple’s new iPhone 5S gives new meaning to the phrase ‘Digital Innovation’.

Okay this time the pun is intended, and hopefully it will help some of you think of new possibilities for digit-driven computing.

Keep innovating!

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Las Ocho I’s de la Innovación Infinita

Las Ocho I’s de la Innovación Infinita

Gracias Vanessa López De la O para su traducción!

Algunos autores argumentan que la innovación exitosa es la suma de la idea más la ejecución; otros hablan más de la importancia de la intuición (insight) y su papel en impulsar la creación de ideas que será sustantiva para los consumidores; y unos cuantos se refieren al papel que la inspiración desempeña en desatar la intuición potencial. Mas la innovación está totalmente vinculada con el valor y cada una de las definiciones, marcos y modelos que existen, sólo cuentan una parte de la historia de la innovación exitosa.

Para alcanzar un éxito sostenible en la innovación, debes trabajar para incorporar un proceso y un modo de pensar reiterativos al interior de tu organización; y es por ello que es importante tener un lenguaje común y marco guía sencillos para la innovación infinita, que todos los empleados puedan comprender fácilmente. Si la innovación se vuelve muy compleja o parece muy difícil, entonces la gente ya no la buscará o no la apoyará.

Algunas organizaciones buscan alcanzar esta simplicidad, o hacer que la búsqueda de la innovación parezca más alcanzable, considerando a la innovación como una actividad impulsada con base en proyectos. Sin embargo, un enfoque por proyecto a la innovación no le permitirá jamás convertirse en un modo de vida en tu organización. En lugar de ello, debes trabajar para posicionar a la innovación como algo infinito, como un pilar de la organización; algo con su propia búsqueda de la excelencia – una práctica profesional con la cual se está comprometido.

Así pues, si tomamos bastantes de las buenas prácticas de excelencia en la innovación y las mezclamos con algunos pocos nuevos ingredientes, el resultado es un sencillo marco que las organizaciones pueden utilizar para guiar su búsqueda sostenible de innovación – las Ocho I’s de la Innovación Infinita. Este nuevo marco ancla lo que es un proceso muy colaborativo. Aquí está el marco y algunos de los muchos puntos que las organizaciones deben considerar durante cada etapa del proceso continuo:

1. Inspiración

  • Los empleados están navegando constantemente un mundo siempre cambiante, tanto en su contexto nacional, como en el que se encuentran si viajan por el mundo de negocios o placer, o incluso a través de varias páginas web en el navegador de su PC, tableta o teléfono inteligente.
  • A medida que se mueven por el mundo, ¿qué es lo que ven que los inspire y posiblemente también a los esfuerzos de innovación de la empresa?
  • ¿Qué perciben que la tecnología haga posible pronto, que no era posible antes?
  • La primera vez buscamos inspiración en torno a qué hacer; la segunda, buscamos inspirarnos acerca de cómo hacerlo.
  • En las ideas que fueron seleccionadas, ¿qué inspiración encontramos para su implementación, iluminación y/o instalación?

2. Investigación

  • ¿Qué podemos aprender de los diversos elementos de inspiración que los empleados generan?
  • ¿Cómo se reúnen y conectan los elementos aislados de inspiración? O ¿lo hacen?
  • ¿Qué percepciones intuitivas de los clientes se encuentran ocultas en estos elementos de inspiración?
  • ¿Qué tareas-por-hacer son las menos atendidas y en las que vale la pena profundizar?
  • ¿Qué necesidades no satisfechas de los clientes que identificamos vale la pena intentar resolver?
  • ¿Cuáles son las oportunidades más prometedoras, y cuáles podrían ser las más rentables?

3. Ideación

  • No queremos sólo generar montones de ideas, queremos generar montones de buenas ideas.
  • Las intuiciones y la inspiración de las primeras dos etapas incrementan la relevancia y la profundidad de las ideas.
  • Debemos de proveer a la gente de algún medio para compartir sus ideas, de una manera en que se sientan seguros.
  • ¿Cómo podemos integrar de la mejor manera posible los métodos de ideación, existentes tanto dentro como fuera de las comunicaciones virtuales (Internet)?
  • ¿Qué tan bien hemos comunicado los tipos de innovación que buscamos?
  • ¿Hemos capacitado a nuestros empleados en una diversidad de métodos creativos?

4. Iteración

  • Ninguna idea surge completamente formada, por lo que debemos darle a la gente una herramienta que les permita contribuir ideas de manera que los demás puedan basarse en ellas; y contribuir a descubrir las potenciales fallas fatales de las ideas, a fin de que puedan ser superadas.
  • Debemos hacer prototipos de las ideas y realizar experimentos para validar suposiciones, así como probar obstáculos potenciales o incertidumbres para obtener aprendizajes que podamos utilizar para fortalecer cada idea y su respectivo prototipo.
  • A medida que realizamos cada experimento, ¿estamos instrumentando para el aprendizaje?

Las Ocho I's de la Innovación Infinita

5. Identificación

  • ¿De qué maneras dificultamos a los clientes desatar el valor potencial de esta solución potencialmente innovadora?
  • ¿Cuáles son las mayores barreras potenciales para la adopción?
  • ¿Qué cambios necesitamos hacer desde una perspectiva financiera, mercadológica, de diseño o de ventas, para facilitar a los clientes el acceso al valor de esta nueva solución?
  • ¿En relación a qué ideas estamos mejor posicionados para desarrollar y llevar al mercado?
  • ¿De qué recursos carecemos para llevar a cabo la promesa de cada idea?
  • Con base en todos los experimentos, datos y mercados, ¿qué ideas deberíamos seleccionar?

Como podrás apreciar en el marco, antes de proceder a la implementación, las cosas vuelven al circuito a través de la inspiración nuevamente. Hay dos razones principales de por qué ocurre esto. La primera consiste en que si los empleados no están inspirados por las ideas que has elegido comercializar y/o por algunas de las cuestiones potenciales de implementación que has identificado, entonces o has elegido las ideas equivocadas o tienes a los empleados equivocados. La segunda razón es que en esta intersección podrías volver en el circuito a través de las primeras cinco etapas con una visión previsora de la implementación (antes de comenzar a implementar de hecho tus ideas), O podrías desatar mucha inspiración y aportes de una audiencia interna más amplia, para llevarlos a la fase de implementación.

6. Implementación

  • ¿Cuáles son los medios más efectivos y eficientes para hacer, comercializar y vender esta nueva solución?
  • ¿Qué tanto nos llevará desarrollar la solución?
  • ¿Tenemos acceso a los recursos que necesitaremos para producir la solución?
  • ¿Estamos fuertes en los canales de distribución que son más adecuados para concretar esta solución?

7. Iluminación

  • Para los clientes potenciales, ¿es obvia la necesidad de la solución?
  • ¿Estamos lanzando una nueva solución a una categoría existente de producto/servicio, o estamos creando una nueva categoría?
  • Esta nueva solución, ¿encaja dentro de nuestro paraguas de marca existente y representa algo que los clientes potenciales confiarían en nosotros al vendérsela?
  • ¿Qué tanta interpretación de valor necesitamos hacer para ayudar a entender a los clientes potenciales, cómo esta nueva solución encaja en sus vidas y debe tenerse?
  • ¿Necesitamos meramente explicar esta innovación potencial a los clientes porque se ancla a algo que ya entienden, o necesitamos educarlos en el valor que aportará a sus vidas?

8. Instalación

  • ¿Cómo hacemos de la mejor manera que esta nueva solución se convierta en una parte aceptada de la vida diaria de un gran número de personas?
  • ¿Cómo eliminamos las trabas de acceso para facilitarle lo más posible a la gente adoptar esta nueva solución, y que incluso la difundan entre sus amistades?
  • ¿Cómo instrumentamos para aprender durante el proceso de instalación, y así retroalimentar nuevas lecciones dadas por los clientes de vuelta al proceso para incorporar actualizaciones potenciales a la solución?

Conclusión

El marco de las Ocho I’s de la Innovación Infinita está diseñado para ser un proceso continuo de aprendizaje, uno sin fin, dado que los resultados de un ciclo se vuelven los aportes para el siguiente. Es asimismo, un marco guía relativamente nuevo para ser utilizado por las organizaciones, por lo cual si tienes ideas de cómo hacerlo aún mejor, por favor házmelas saber en los comentarios. El marco también es ideal para empoderar a una ola de nuevas transformaciones organizacionales por venir, conforme un número creciente de organizaciones (incluyendo Hallmark) comienzan a dejar una estructura organizacional centrada en el producto, por una centrada en las necesidades del cliente. El poder de este nuevo enfoque reside en que concentra a la organización en llevar a cabo las soluciones que los clientes requieren, a medida que sus necesidades continúan cambiando, en lugar de enfocarse tan solo en cómo hacer mejor un producto en particular (o un conjunto de productos).

En resumen, a medida que dejas el enfoque por proyecto que está evitando que la innovación se vuelva un modo de vida en tu organización, considera utilizar las Ocho I’s de la Innovación Infinita para influir en la mentalidad de tu organización y para anclar su lenguaje común de la innovación. El marco es estupendo para guiar conversaciones, hacer más fuertes tus resultados de la innovación, y contribuirá a tu búsqueda de la excelencia en la innovación –así que pruébalo.

Derechos Reservados 2013 – Braden Kelley

Traducción: Vanessa López De la O.

Vanessa Lopez-De la OVanessa López De la O es Co-Fundadora de Ecology of Innovation. Una experta en Desarrollo Internacional, también es la Embajadora de México en la Red Global por un Futuro Floreciente y Sostenible.

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