Tag Archives: startups

Whither Innovation in Indiana?

Whither Innovation in Indiana?Now that I’ve got your attention, let’s talk about homosexuality and whether it has any impact on innovation. There probably are two no more polarizing topics in the United States than homosexuality and abortion. But the truth is that if both sides of the political and religious spectrum focused on the golden rule, there would be less corruption, we’d all be a lot happier, probably have more innovation, and our politics would be more productive.

Today we have another great case study for how short people’s attention spans have gotten, how the government can help or hinder innovation, how little investigative journalism still remains in the United States, and how easily people are swayed by a soundbite that runs contrary to (or in support of) their own personal religious or political beliefs.

But this article isn’t going to be some diatribe in support or opposition to Indiana’s Religious Freedom Restoration Act (RFRA) legislation (referred to by the media as an anti-gay law) because I freely admit I don’t fully understand all of the implications of a similar federal law and whether federal protections for gays apply to the state law.

Instead I’d like to focus briefly on what this controversy brings to mind for me in regards to the efforts of hard-working folks attempting to stimulate innovation in Indiana (and elsewhere).

Point #1: People Must Feel Safe to Innovate

If we take Maslow’s Heirarchy of Needs as gospel (okay, maybe that’s dangerous word choice), then safety is one of the most important needs for people, and in order to innovate people must feel safe. True innovation usually requires taking risks and doing things in a new way, and if people feel that trying something new or even just being different has a high price, then people won’t step out of their comfort zone and push the boundaries of conventional wisdom. So if we are truly trying to do everything we can to inspire innovation in our region, shouldn’t we also try to do everything we can to make it feel like a place where it is safe to be different and where that difference is potentially even celebrated?

Point #2: Diversity is Important (to a point)

We all look at the same situation through different eyes and a different history of experiences, values and beliefs. This diversity can help create different idea fragments that can be connected together to create revolutionary new ideas with the potential to become innovations. But at the same time, having some shared experiences helps to make it easier to communicate and to have a higher level of trust (assuming those experiences were good ones). So if we are truly trying to do everything we can to inspire innovation in our region, shouldn’t we also do everything we can to make different groups of people look to our region as a good place to move to so we have a diverse talent pool?

Conclusion: If Culture Trumps Strategy, Environment Trumps Startups

The world is changing. It used to be that companies started and grew in the community where they were founded, hiring increasing numbers of people from the surrounding areas and attracting others from elsewhere. Now, an increasing number of companies (especially digital ones) are moving to more distributed models where they create satellite offices where the talent is rather than trying to attract all of the talent to a single location.

Economically this is meaning that it is becoming less important that the next Facebook starts in your town than it is for the next Facebook to want to have an office in your town. This means that for cities, counties, states and countries, the greater economic impact is likely to be made not from trying to encourage lots of startups, but instead from trying to create an environment that young, talented people choose to live in.

And when you create a place that is attractive for smart, creative people to move to, you know what, you’re likely to end up not just with more growing digital companies seeking a presence, but also a larger number of startups than if you started with the goal of specifically trying to encourage startups.

Does your region focus on creating startups as the primary goal or on making itself an attractive place for a young, diverse and talented population to live?

Does this uproar help Indiana establish its as an attractive place to be, or work against that perception?

I’ll let you decide!

P.S. If you’re curious, here are The Metro Areas With the Largest, and Smallest, Gay Populations (for what it’s worth, Indianapolis isn’t on either list)


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Think Like a Tech Company or Go Out of Business

Think Like a Tech Company or Go Out of Business

by Braden Kelley and Linda Bernardi

Even in 2014, there are business sectors who feel they are not ‘tech companies’. News flash: Whether you are a consumer products company, an insurance company, a hotel, or a pharmaceutical company, your business is a technology business. Why?

Technology is the link between any business and its customers. To say technology is not core to your business strategy, means you think customers are not the key to your business success. So, your business is a technology business whether you want it to be or not.

Today technology is how you market and sell your products, make your business more efficient, and most importantly, how you stay connected to your customers. Some companies mistake the importance of technology to mean that they need to open a twitter account and monitor social media, put in an ERP and CRM system, and revamp their web site. But the importance of technology in today’s business environment is more than that.

ERP and CRM are common tools, a requirement to remain competitive, and while social media and the internet are important to sales and marketing success, they are becoming yesterday’s news as customers develop deeper connections to their mobile devices. If you aren’t on their devices and interacting in a meaningful way with them there in real-time, you won’t stay connected to them in the long run.

Let’s look at the impact on a few different industries whose members tend not to see themselves as technology companies:

1. Fortune 100 consumer product goods (CPG) companies
2. Hotel Chains
3. Big Box Retailers

1. Fortune 100 CPG companies typically manufacture large quantities of consistent products and have visually pleasing (static) web pages for consumers. But they don’t use technology well enough to detect what the market wants before it knows it, often fail to personalize or customize products to customer needs, and usually lack the online networks that could help connect other customer product needs together into new potential product ideas that the company could co-create with their customers. Often connection means post mortem analytics on data collected in the past, or, analyzing previous customer interactions with static web pages. Creating authentic customer connections requires online and mobile technology these companies usually don’t possess. I don’t mean apps (which often are pretty much the same as a website), but new physical/online/mobile engagement models that inspire customers to stay connected to the company (and each other) in a dynamic, evolving community. Rethinking is needed here. The customer is not just a buyer but an influencer. If CPG companies want to sell that next bottle of $300 facial cream, they better consider delighting, and not just marketing to, their customer base.

2. AirBnB has proven to be a major disruptive force in the hotel and hospitality business, grabbing a massive foothold in a market that the Homeaway.com member companies created and should have dominated. Resistance to AirBnB is massive and lawsuits are abundant, but for a moment let’s go beyond the hype and explore the angst of traditional hotels. AirBnB created a highly connected, effective community of property owners and property renters. This bi-directional ecosystem can only thrive if they are both happy and satisfied. To experience what they’ve created, first go to a traditional hotel website (pictures of room, building, lobby) and then go to AirBnB and browse the hundreds of customer experiences their property owners offer. On the hotel site you’ll see they’ve created the mechanics of paying to rent a hotel room, while on AirBnB you’ll see that they’ve created both an ecosystem and an experience.

3. Big box retailers have done a poor job of seeing themselves as technology companies capable of fending off challenges from online-only retailers. Target made the mistake of seeing themselves as a retailer, not a technology business, and so they outsourced their ecommerce to Amazon in the beginning, only to regret doing so because Amazon was able to learn which 20% of their inventory drove 80% of their profits, and when.

Meanwhile, Costco and Walmart, despite being two of the most successful retailers in the world, have struggled to find success online because they can’t get beyond their brick and mortar heritage to see themselves as a technology business with an integrated online/offline ecosystem. Seriously, it is 2014, do we still need to get our Costco circulars in the mail? Nothing has changed about Costco’s interaction with its customers. Walmart exacerbated the disconnection between the two sides of their business by creating a separate online division and exiling it to Silicon Valley. Costco sells different products online than offline. The results of both of these approaches have been far from stellar.

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Technology Lowers Barriers to Entry

In the history of the world, it has never been easier to start and scale a business to a global footprint, not in a matter of decades or years, but in months. And it is not just the other companies in your industry and technology-driven startups that you have to worry about if you choose not to view yourself as a technology company and move as fast as they do. You have to worry about competition from established technology players like Google and Amazon too, because one day they (or people that used to work for them) might decide that your market is attractive enough to enter and come disrupt your industry. For example, Amazon has become a book publisher and a financial services company.

Technology Enables Experiences

Technology enables the creation of customer experiences. I am going to choose my insurance company based on my experience. At the end of the day if all prices are comparable, then how the businesses you interact with make you feel, and the connections you’ve built with them will matter more. Without an emphasis on using technology to make your business a social business, you will find your company displaced by others that do. You must lead your industry in identifying opportunities to use technology to get closer to your customers. The future of business will be all about delighting customers and making their experience more personal.

Technology is not just a tool, but central to everything you do in today’s always on, always connected digital age.

Here are ten ways that technology can help you become a more social business:

  1. Building Connections
  2. Developing Networks
  3. Global Sensing and Prediction
  4. Sharing Recommendations
  5. Creating Experiences
  6. Personalization
  7. Customization
  8. Co-Creation
  9. Crowdsourcing
  10. Open Innovation

To give you an example of what things will look like in the future, the forward thinking health insurance company will leverage the mobile device for virtual ID cards, drug interaction warnings, personal triage, mobile care, wellness, cost sharing calculations, FSA/HSA administration, diagnostics, and more.

Conclusion

In conclusion, no matter what business you are in, it is very dangerous not to see technology as a competitive differentiator and a core driver of your business. Instead, you must constantly look at how you can become more of a technology company in order to enable deeper customer connections and more meaningful experiences. Today if you don’t connect with, understand, delight and start predicting your customer’s needs/wants, you may not thrive in your industry and your competition and new entrants who do embrace technology will replace you.

This article is brought to you by Linda Bernardi and Braden Kelley. Collectively, we have over 30 years of experience working with large, global multi-disciplinary enterprises. We write this with care and passion as we want your enterprises to succeed. We would love to hear your thoughts.


Guest Collaborator:

Linda BernardiLinda Bernardi is a Technology Strategist, Investor, and Founder & CEO at StraTerra Partners, The Bernardi Leadership Institute and a Strategic Advisor at Cloudant Inc. She is also the Author of Provoke, Why the Global Culture of Disruption is the Only Hope for Innovation. Learn more here about Linda’s work on disrupting large enterprise analytics.

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Where Must Marketing Innovation Come From?

Where Must Marketing Innovation Come From?The world of marketing and advertising used to be very simple. If you got a branding or marketing job with a company, you would inherit an agency that the person above you or before you had hired to work with the company to get your advertising and marketing campaigns developed and executed. After a few years if you worked in an agency you might go work for a company and manage an agency, or after a few years working in marketing or advertising for a company you might leave to go work for an agency, and this cycle might repeat several times over the course of your career.

In this simple environment, companies looked to their agencies to bring them innovations in marketing and/or advertising.

But this simple world of marketing and advertising is being disrupted and made more complex in the same way that many other industries are (think book publishing, book retailing, management consulting, etc.).

We live in an era where people have more places in which they can collect and share experiences, both on-line and off-line. Facebook, Linkedin, Twitter, Instagram, hundreds of cable TV channels, hundreds of satellite radio channels, on-demand audio and video (both online and off), Pinterest, Instagram, meetups, unconferences, flash mobs, etc.

We live in an era where marketing and advertising work can be fulfilled not just via the company/agency partnership, but also via co-creation with customers, crowdsourcing, via crowdfunding, or utilizing cloud labor or crowd computing.

With the rise of the digital marketplace also came a plethora of new digital and social marketing and advertising agencies, many of which were snapped up by giants like WPP to infuse some new thinking and “innovation” into their traditional direct marketing and advertising execution methods.

But now, comes the news that Nissan (who has switched their slogan from “Innovation for All” to “Innovation that Excites”) has created their own Marketing Innovation Lab rather than just relying on their roster of agencies to bring them innovations. Nissan may not be the only company to do something similar, but it begs the question, where should marketing innovation come from?

Obviously Nissan doesn’t feel that they are getting enough innovation in their marketing efforts from their agencies, and it makes you wonder, shouldn’t it be the agencies not the companies who are looking to find and support upstart companies and apps with marketing and media potential?

Well, why should any company look to source innovation from any one place, even if it is marketing innovation?

I would say that every company looking to succeed at ANY type of innovation should be looking to collect dots to connect from as many sources as possible, including:

  1. Agencies and Advisory Firms
  2. Co-Creation with Customers
  3. Crowdsourcing
  4. Partners
  5. Suppliers
  6. Competitors
  7. Adjacent Industries
  8. Distant Industries
  9. Market Research (ethnography, surveys, focus groups, trends, etc.)
  10. Startups
  11. … (insert your favorite here)

So, where will your next marketing innovation come from?

And, who are you working with from outside in order to bring innovation inside?


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Innovation Costs of Reducing the Flow of Immigrants and Travelers to USA

Innovation Costs of Reducing the Flow of Immigrants and Travelers to USA

September 11th was a traumatic event for the psychology of the nation but also for its innovation capacity. After 9/11 the United States started admitting fewer highly skilled immigrants, invited fewer students to come study here, and companies and consumers cut back on their travel budgets.

These factors, along with many others, combined to reduce the amount of face to face collaboration and created new innovation headwinds for the country.

In 2001, Michael Porter of Harvard Business School published a report ranking the United States as #1 in terms of innovative capacity. By 2009, the Economist Intelligence Unit had dropped the United States in its innovation rankings from #3 between 2002 – 2006 to #4 between 2004 – 2008. The most recent Global Innovation Index has the United States falling from #1 in 2009 to #7 in 2011 — behind Switzerland, Sweden, Singapore, Hong Kong, Finland, and Denmark.

If you’re the United States, not being #1 anymore is a definite concern. Innovation drives job creation, and any decrease in the pace of domestic innovation will ultimately lead to lower economic growth. As the United States slides down the innovation rankings, restrictive immigration policies suddenly look less smart.

The number of foreign student visas increased by a third during the 90s, peaking in 2001 at 293,357 before dropping post-9/11 by 20 percent nearly overnight. It took five years before foreign student visa numbers recovered to 2001 levels. Last year, 331,208 foreign student visas were issued.

But a drop-off in highly skilled immigration does not account for the entire drop in America’s innovation leadership. Another headwind that hit post-9/11 was the drop-off in travel in America. In August 2001, 65.4 million airline passengers traveled to the country. It took three years for passenger growth to resume.

Travel — both corporate and leisure — is important to innovation for three main reasons:

  1. People see and experience things that spark new ideas
  2. Face-to-face meetings deepen human connection and improve productivity and collaboration.
  3. Innovation partnerships and acquisitions are often made in-person.

The United States is at an innovation crossroads. We must commit to attracting more innovators to this country, and to traveling abroad more. Not doing so is guaranteed to exacerbate America’s slide from innovation leader to laggard.

This article first appeared on The Atlantic before drifting into the archive

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