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Four Hidden Secrets of Innovation

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Four Hidden Secrets of Innovation

GUEST POST from Greg Satell

Every enterprise needs to innovate. It doesn’t matter whether you are a profit-seeking business, a nonprofit organization or a government entity, the simple truth is that every business model fails eventually, because things change over time. We have to manage not for stability, but for disruption or face irrelevance.

There is no shortage of advice for how to go about it. In fact, there is far too much advice. Design thinkers will tell you to focus on the end user, but Harvard’s Clayton Christensen says that listening too much to customers is how good business fail. Then there’s open innovation, lean startups and on and on it goes.

The truth is that there is no one path to innovation. Everybody has to find their own way. Just because someone had success with one strategy, doesn’t mean that it’s right for the problem you need to solve. So the best advice is to gather as many tools for your toolbox as you can. Here are four things about innovation you rarely hear, but are crucially important.

1. Your Success Often Works Against You

For the most part, managers aren’t responsible for innovation, but as the name implies, to manage operations. That involves hiring and empowering strong employees, optimizing practices and processes and reducing errors and mistakes. You’re generally not trying to build a better mousetrap, you are trying to run things smoothly and efficiently.

It’s easy for someone to stand up on stage at a conference and paint operational managers as dimwits with their heads in the sand, but the truth is that managing a quality operation is a very tough job and requires a lot of talent, dedication and skill. So unless you’ve actually done the job, don’t be too quick to judge.

However, managers do need to realize that there is a fundamental tradeoff between innovation and optimizing operations. Running efficient operations requires standardization and control to yield predictable outcomes. Innovation, on the other hand requires experimentation. You need to try a lot of new things, most of which are going to fail.

That’s why success so often leads to failure. What makes you successful in one competitive environment will likely be a hindrance when things change. So you need to work to find a healthy balance between squeezing everything you can out of the present, while still leaving room to create and build for the future.

2. Don’t Look For A Large Addressable Market, Look For A Hair-On-Fire Use Case

Good operational managers learn to identify large addressable markets. Bigger markets help you scale your business, drive revenues and allow you invest back into operations to create more efficiency. Greater efficiencies lead to fatter profit margins, which allow you to invest even more on improvements, creating a virtuous cycle.

Yet when you are trying something to do something truly new and different, trying to scale too fast can kill your business even before it’s really gotten started. A truly revolutionary product is unpredictable because, by its very nature, it’s not well understood. Charging boldly into the unknown is a sure way to run into unanticipated problems that are expensive to fix at scale.

A better strategy is to identify a hair on fire use case — someone who needs a problem fixed so badly that they are willing to overlook the inevitable glitches. They will help you identify shortcomings early and correct them. Once you get things ironed out, you can begin to scale for more ordinary use cases.

For example, developing a self-driving car is a risky proposition with a dizzying amount of variables you can’t account for. However, a remote mine in Western Australia, where drivers are scarce and traffic nonexistent, is an ideal place to test and improve the technology. In a similar vein, Google Glass failed utterly as a mass product, but is getting a second life as an industrial tool. Sometimes it’s better to build for the few than the many.

3. Start With The Monkey First

When I work with executives, they often have a breakthrough idea they are excited about. They begin to tell me what a great opportunity it is and how they are perfectly positioned to capitalize on it. However, when I begin to dig a little deeper it appears that there is some big barrier to making it happen. When I try to ask about that, they just shut down.

Make no mistake. Innovation isn’t about ideas, it’s about solving problems. The truth is that nobody cares about what ideas you have, they care about the problems you can solve for them. The reason that most people can’t innovate isn’t because they don’t have ideas, but because they lack the perseverance needed to stick with a really tough problem until it’s cracked.

At Google X, the tech giant’s “moonshot factory,” the mantra is #MonkeyFirst. The idea is that if you want to get a monkey to recite Shakespeare on a pedestal, you start by training the monkey, not building the pedestal, because training the monkey is the hard part. Anyone can build a pedestal.

The problem is that most people start with the pedestal, because it’s what they know and by building it, they can show early progress against a timeline. Unfortunately, building a pedestal gets you nowhere. Unless you can actually train the monkey, working on the pedestal is wasted effort.

4. The Next Big Thing Always Starts Out Looking Like Nothing At All

When Alexander Fleming first published his discovery of penicillin, no one really noticed. When Xerox executives first got a look at the Alto — the machine that would become the model for the Macintosh seven years later — they didn’t see what the big deal was. When Jim Allison first showed pharmaceutical executives his idea for cancer immunotherapy, not one would invest in it.

We always think that when we see the next big thing it will be obvious, but the truth is that it always starts out looking like nothing at all. The problem is that when something truly has the power to change the world, the world isn’t ready for it yet. It needs to build advocacy, gain traction among a particular industry or field and combine with other innovations before it can make an impact.

But no one ever tells you that. We are conditioned to think that someone like Steve Jobs or Elon Musk just stands up on stage, announces that the world has changed and everybody just goes along. It never really happens that way because innovation is never a single event. It is a long process of discovery, engineering and transformation that usually takes about 30 years to fully complete.

Don’t worry about people stealing your ideas,” said the computing pioneer Howard Aiken. “If your ideas are any good, you’ll have to ram them down people’s throats” and never were truer words spoken. Great innovators aren’t just people with ideas, they are people who are willing to stick it out, take the shots from people who ridicule them and, eventually, if they are lucky, they really do change the world.

— Article courtesy of the Digital Tonto blog and previously appeared on Inc.com
— Image credits: Pixabay

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Where People Go Wrong with Minimum Viable Products

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Where People Go Wrong with Minimum Viable Products

GUEST POST from Greg Satell

Ever since Eric Reis published his bestselling book, The Lean Startup, the idea of a minimum viable product (MVP) has captured the imagination of entrepreneurs and product developers everywhere. The idea of testing products faster and cheaper has an intuitive logic that simply can’t be denied.

Yet what is often missed is that a minimum viable product isn’t merely a stripped down version of a prototype. It is a method to test assumptions and that’s something very different. A single product often has multiple MVPs, because any product development effort is based on multiple assumptions.

Developing an MVP isn’t just about moving faster and cheaper, but also minimizing risk. In order to test assumptions, you first need to identify them and that’s a soul searching process. You have to take a hard look at what you believe, why you believe it and how those ideas can be evaluated. Essentially, MVP’s work because they force you to do the hard thinking early.

Every Idea Has Assumptions Built In

In 1990, Nick Swinmurn had an idea for a business. He intended to create a website to sell shoes much like Amazon did for books. This was at the height of the dotcom mania, when sites were popping up to sell everything from fashion to pet food to groceries, so the idea itself wasn’t all that original or unusual.

What Swinmurn did next, however, was. Rather than just assuming that people would be willing to buy shoes online or conducting expensive marketing research, he built a very basic site, went to a shoe store and took pictures of shoes, which he placed on the site. When he got an order, he bought the shoes retail and shipped them out. He lost money on every sale.

That’s a terrible way to run a business, but a great — and incredibly cheap — way to to test a business idea. Once he knew that people were willing to buy shoes online, he began to build all the elements of a fully functioning business. Ten years later, the company he created, Zappos was acquired by Amazon for $1.2 billion.

Notice how he didn’t just assume that his business idea was viable. He tested it and validated it. He also learned other things, such as what styles were most popular. Later, Zappos expanded to include handbags, eyewear, clothing, watches, and kids’ merchandise.

The Cautionary Tale Of Google Glass

Now compare how Swinmurn launched his business with Google’s Glass debacle. Instead of starting with an MVP, it announced a full-fledged prototype complete with a snazzy video. Through augmented reality projected onto the lenses, users could seamlessly navigate an urban landscape, send and receive messages and take photos and videos. It generated a lot of excitement and seemed like a revolutionary new way to interact with technology.

Yet criticism quickly erupted. Many were horrified that hordes of wandering techno-hipsters could be surreptitiously recording us. Others had safety concerns about everything from people being distracted while driving to the devices being vulnerable to hacking. Soon there was a brewing revolt against “Google Glassholes.”

Situations like the Google Glass launch are startlingly common. In fact, the vast majority of new product launches fail because there’s no real way to know whether you have the right product-market fit customers actually get a chance to interact with the product. Unfortunately, most product development efforts start by seeking out the largest addressable market. That’s almost always a mistake.

If you are truly creating something new and different, you want to build for the few and not the many. That’s the mistake that Google made with its Glass prototype.

Identifying A Hair On Fire Use Case

The alternative to trying to address the largest addressable market is to identify a hair-on-fire use case. The idea is to find a potential customer that needs to solve a problem so badly that they almost literally have their hair on fire. These customers will be more willing to co-create with you and more likely to put up with the inevitable bugs and glitches that always come up.

For example, Tesla didn’t start out by trying to build an electric car for the masses. Instead, it created a $100,000 status symbol for Silicon Valley millionaires. Because these customers could afford multiple cars, range wasn’t as much of a concern. The high price tag also made a larger battery more feasible. The original Tesla Roadster had a range of 244 miles.

The Silicon Valley set were customers with their hair on fire. They wanted to be seen as stylish and eco-friendly, so were willing to put up with the inevitable limitations of electric cars. They didn’t have to depend on them for their commute or to pick the kids up at soccer practice. As long as the car was cool enough, they would buy it.

Interestingly, Google Glass made a comeback as an industrial product and had a nice run from 2019 to 2023 before they went away for good. For hipsters, an augmented reality product is far from a necessity, but a business that needs to improve productivity can be a true “hair-on-fire” use case. As the product improves and gains traction, it’s entirely possible that it eventually makes its way back to the consumer market in some form.

Using An MVP To Pursue A Grand Challenge

One of the criticisms of minimum viable products is that they are only suited for simple products and tweaks, rather than truly ambitious projects. Nothing could be further from the truth. The reality is that the higher your ambitions, the more important it is for you to start with a minimum viable product.

IBM is one company that has a long history of pursuing grand challenges such as the Deep Blue project which defeated world champion Garry Kasparov at chess and the Blue Gene project which created a new class of “massively parallel” supercomputers. More recently were the Jeopardy grand challenge, which led to the development of its current Watson business and the Debater project.

Notice that none of these were fully featured products. Rather they were attempts to, as IBM’s Chief Innovation Officer, Bernie Meyerson, put it to me, invent something that “even experts in the field, regard as an epiphany and changes assumptions about what’s possible.” That would be hard to do if you were trying to create a full featured product for a demanding customer.

That’s the advantage of creating an MVP. It essentially acts as a research lab where you can safely test hypotheses and eliminate sources of uncertainty. Once you’ve done that, you can get started trying to build a real business.

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

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The Human Element in Futurism

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Understanding What Drives Tomorrow’s Behaviors

The Human Element in Futurism

GUEST POST from Chateau G Pato

We live in a world obsessed with technological predictions. We meticulously track Moore’s Law, debate the singularity of AI, and map the exponential curve of quantum computing. But I argue that this focus on hardware and code misses the single most volatile and vital factor in any prediction: the human being. As a human-centered change and innovation thought leader, my job is to look beyond the what of technology to the why of behavior. Futurism is not about predicting a new device; it’s about understanding a new human need. The key to successful future-casting — and successful innovation — lies in anchoring technological foresight to the immutable principles of human psychology and anticipating how technology will meet, or fail to meet, our deepest, most enduring needs for connection, control, identity, and security.

The history of failed predictions is littered with technologies that were brilliant on paper but died in the marketplace because they misunderstood or ignored human behavior. We often forget that technology is merely an accelerant; the engine of change is always a shift in human value. To effectively navigate and profit from the future, leaders must perform an exercise I call Behavioral Foresight. This means starting with the timeless human desire (e.g., the need for connection, status, or ease) and then envisioning the scenarios where a disruptive technology either amplifies that desire or simplifies the mechanism for achieving it. When technological capability meets a deep human truth, true transformation occurs.

The Three Drivers of Tomorrow’s Behavior

While the expression of human needs changes with every innovation cycle, the underlying drivers remain constant. Successful futurism anticipates the convergence of technology with these three enduring pillars:

  • 1. The Need for Control and Autonomy: As the world becomes more complex, people inherently seek more control over their personal data, time, and environment. Any technology that democratizes power, decentralizes decision-making, or gives the individual greater agency (from blockchain to personalized health trackers) is inherently aligned with a fundamental human driver.
  • 2. The Pursuit of Ease (Frictionless Living): We are wired to conserve energy. Innovations that eliminate friction, simplify complex processes, or reduce cognitive load will always win. This is why a one-click purchase button is more successful than a three-step form, and why seamless integration beats powerful but complex software. Tomorrow’s successful behaviors are the easiest ones.
  • 3. The Desire for Authentic Identity and Belonging: Technology may connect us globally, but it also creates anxiety around authenticity and status. The future of social platforms and digital identities will be driven by platforms that allow for niche, meaningful connections and give people powerful tools to express their unique, evolving selves, resisting the homogenizing forces of mass culture.

“Predicting technology is easy. Predicting human behavior is the only thing that matters.”

Case Study 1: The Smartphone Revolution – Prioritizing Connection Over Capability

The Failed Prediction:

In the early 2000s, many tech experts predicted that the future of mobile phones would be driven by technical capability — faster processors, superior cameras, and advanced features. The prevailing wisdom was that professional and power users would be the primary adopters of these complex devices.

The Human-Centered Reality:

The iPhone’s success was not initially built on its superior processing power (which lagged behind competitors at launch), but on its ability to satisfy the human need for frictionless connection and belonging. The seamless interface, the easy access to email and social platforms, and the intuitive camera made it a powerful social tool, not just a business device. The killer applications were not spreadsheets; they were instant messaging, photo sharing, and social networking. The success was driven by the average person’s need to feel constantly connected and to easily share their lived experience. It prioritized the human element (ease, connection) over the technical element (raw power).

The Key Behavioral Insight:

The market demonstrated that people will tolerate significant complexity behind the scenes (processor architecture, network latency) if the interface perfectly addresses their core human need for immediate, effortless social interaction. The future of mobile wasn’t about power; it was about proximity to people.

Case Study 2: The Failure of Google Glass – When Status Conflicts with Comfort

The Technological Promise:

Google Glass was a technological marvel: a discreet, wearable computer that promised to deliver information directly into the user’s field of vision, representing the ultimate fusion of digital information and physical reality. Technically, it was a leap forward, aimed at maximizing efficiency and access to data.

The Human-Centered Failure:

Despite the technical brilliance, Glass failed spectacularly in the consumer market, largely because it created severe friction in two fundamental human areas: social identity and control.

  • Identity/Belonging: Users felt self-conscious, and the public saw the wearers — dubbed “Glassholes” — as arrogant or intrusive. The device was perceived as a symbol of status and exclusion, making the wearer feel separate rather than integrated.
  • Control/Security: The always-on camera and recording capability deeply violated the social contract of trust and privacy, making non-wearers feel a profound lack of control over their own image and security in the wearer’s presence.

The technology ignored the human truth that people value their sense of comfort, privacy, and social acceptance far more than instant access to search results.

The Key Behavioral Insight:

The market demonstrated that any technology that infringes upon the psychological safety and social norms of the community will be rejected, regardless of its utility. The human need for social acceptance and privacy trumped the efficiency gains offered by the wearable tech.

Conclusion: The Future is Human-Shaped

The most enduring innovations are not those that change the most things, but those that understand the things that never change—the immutable drivers of human behavior. Technology simply provides new pathways to fulfill these old needs.

For any leader charting a course into the future, your greatest tool is not a crystal ball or a supercomputer; it is radical empathy. You must look at emerging technologies through the lens of human psychology. Ask: Does this technology simplify an ancient frustration? Does it amplify a core need for connection? Does it empower the individual or take away their control?

The convergence of technological capability and human truth is where true value is created. By centering your future-casting on the timeless human element, you move beyond mere trendspotting to true FutureHacking – proactively shaping a world that is not only technologically advanced but also genuinely human-centered and aligned with the aspirations of the people it serves.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

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