Tag Archives: Value Access

Entrepreneurs Must Think Like a Change Leader

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Entrepreneurs Must Think Like a Change Leader

Some entrepreneurs start a business because they want to be their own boss doing something they understand. But many startup entrepreneurs start a business because they want to change something, to deliver more value for customers than existing solutions, to disrupt an industry, to become a unicorn, etc. Entrepreneurs like this will need to become masters of change.

You have a great idea.

And you’re hoping to launch a business and change the world, making a dollar or two along the way.

Does this describe you?

If so, you will need to know how to build and operate a business. You will need to be able to profitably manufacture and sell your product and/or service. But you will also need to be really good at something that many people don’t think about when they’re creating a startup.

You must become good at leading change because you are going to be asking people to change their behavior, and people don’t do this easily and may even resist.

But it is possible to understand and harness the Eight Change Mindsets™ that cause people to choose change. These include:

  1. Mover ’n’ Shaker: give these people the chance to be first

  2. Thrill Seeker: these people like to try new things and experiment

  3. Mission-Driven: these people need reasons to believe

  4. Action-Oriented: these people just want to know what needs to be done

  5. Expert-Minded: teach these people how to do it, and they will seek mastery

  6. Reward-Hungry: these people want recognition for adopting the change

  7. Team Player: these people are happy to help if you show them why the change will be helpful

  8. Teacher: show these people how to get others to choose change

Getting people to choose change is important because you’ll be asking people to abandon their existing solution to adopt yours – even if it is the do-nothing solution. This is not easy because people get comfortable using their existing solution and will be uncomfortable with the idea of doing something different.

Eight Change Mindsets to Harness for Success

If you read through this list and imagine what might happen if you haven’t addressed these mindsets in your business plan, you should quickly find yourself with eight potential explanations for why people might resist your new product or service and start having ideas about how to create initiatives to leverage them to overcome potential resistance.

When we break out the trap of thinking about all customers as the same or out of demographic segmentation traps we can start to see our potential customers as people and to identify their different motivations that will determine whether our business is a raging success or a humbling failure.

This is of course assuming that you’ve leveraged my Innovation is All About Value approach to make sure that you’re hitting on all three cylinders with the product or service that you’re bringing to market:

  1. Value Creation is pretty self-explanatory. Your innovation investment must create incremental or completely new value large enough to overcome the switching costs of moving to your new solution from the old solution (including the ‘Do Nothing Solution’). New value can be created by making something more efficient, more effective, possible that wasn’t possible before, or create new psychological or emotional benefits.

  2. Value Access could also be thought of as friction reduction. How easy do you make it for customers and consumers to access the value you’ve created. How well has the product or service been designed to allow people to access the value easily? How easy is it for the solution to be created? How easy is it for people to do business with you?

  3. Value Translation is all about helping people understand the value you’ve created and how it fits into their lives. Value translation is also about understanding where on a continuum between the need for explanation and education that your solution falls. Incremental innovations can usually just be explained to people because they anchor to something they already understand, but radical or disruptive innovations inevitably require some level of education (often far in advance of the launch).

Doing well on two of them and poorly on the third will still lead to failure. Too often people only focus on value creation – to their own detriment. Helping people access the value you’re creating and to understand how it fits into their lives are equally important.

If you invest in doing all three well for your product and/or service and leverage the Eight Change Mindsets™, introduced in my latest book Charting Change, you will be unstoppable!

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What’s Your Innovation Story?

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What's Your Innovation Story?

Many, but not all, innovations involve some kind of technology, and start as an invention. Many of these technology-based inventions that may eventually become innovations are created by startups, but many are created inside large companies as well. In both cases, these technology-based potential innovations are often created by engineers or technologists that are well-versed in the problems they are solving to make the technology work, but not always with the problems that the technology may solve for customers. Often the inventors speak the languages of science and technology, which is not always the same language as that understood by the potential customers for their invention that they hope will become an innovation.

As I wrote before in the always popular, and often linked and liked – Innovation is All About Value – there are three keys to achieving a successful transition from invention to innovation:

1. Value Creation

Value Creation is pretty self-explanatory. Your innovation investment must create novel or incremental value large enough to overcome the switching costs of moving to your new solution from the old solution (including the ‘Do Nothing Solution’). New value can be created by making something more efficient or effective, possible that wasn’t possible before, or by creating new psychological or emotional benefits. This creation of new value is what most people focus on, but you can’t achieve innovation without achieving success in the next two components as well.

2. Value Access

Value Access can also be thought of as friction reduction or experience design. How easy do you make it for customers and consumers to access the value you’ve created? How well has the product or service (or the experience of using it) been designed to allow people to access the value easily? How easy is it for the solution to be created? What is the employee experience like? How easy is it for people to do business with you?

These are some of the questions you must ask and answer as you seek to create success in the value access component of innovation.

3. Value Translation

Value Translation is all about helping people understand the value you’ve created and how it fits into their lives. Value translation is also about understanding where on a continuum your solution falls between the need for explanation and education. Incremental innovations can usually just be explained to people because they anchor to something they already understand, but radical or disruptive innovations inevitably require some level of education (often far in advance of the launch).

Done really well, value translation also helps to communicate how easy it will be for customers and consumers to exchange their old solution for the new solution.

Unfortunately, not all three parts of innovation success are equally understood or valued.

Most people understand that the creation of new value (aka value creation) is a key component of innovation success.

Many people understand the concept of barriers to adoption and that value access is thus also a key component to whether or not an invention successfully makes the transformation into an innovation.

BUT, few understand that value translation is probably the most critical component to innovation success. Because value translation inevitably requires both explanation AND education in varying amounts, having a good Evangelist (see The Nine Innovation Roles) that is a gifted storyteller on your innovation team will prove crucial to your innovation success. If people don’t understand how your new solution fits into their lives and why they should abandon their old solution, even if it is the ‘do nothing’ solution, then you stand no chance of your invention becoming an innovation.

And what’s the difference between an invention and an innovation? Wide adoption…

Achieving wide adoption comes not from some catchy advertising campaign, but from creating ridiculous amounts of value in the solution itself, the way that people access the solution (or the experience that they have), and in the story you create around it.

The Role of Experience in Your Innovation Story

Many true innovations create an experience that someone wasn’t able to have before, or take a painful experience and turn it into a delightful one. The automatic transmission liberated millions of people from the struggle of successfully starting a car on a hill and the worry of grinding their gears every time they go to shift gears.

How does using your potential innovation make people feel?

What is the experience like?

Where is the experience awkward or full of friction?

Could it be better?

Experience design has become increasing important because a good or bad user experience, customer experience, or employee experience creates stories, stories that get shared, stories that sometimes take on a life of their own. This is what happens when something goes viral. Sharing of the story itself becomes a new story, meaning that people are now sharing two stories (the original story, and a new story about the sharing of the original story). The power of these shared stories is why the various fields of experience design are growing both in terms of visibility and the numbers of people employed in these kinds of roles (customer experience, customer success, user experience, human-centered design, etc.).

When it comes to innovation, experience and design matter.

Bringing It All Together

Crafting a compelling innovation story requires both a compelling value proposition and a memorable experience. When you have both, your innovation story will be more engaging, easier to tell, and more likely to be shared.

Your innovation story also requires the same type of design thinking process to achieve. You must:

  1. Understand who your audience is
  2. Define what they will find convincing about the value proposition and the experience that your innovation will create
  3. Come up with ideas on how you will tell your innovation story (including the appropriate level of explanation vs. education)
  4. Choose one and prototype your innovation story
  5. Test it with people
  6. And iterate until you find that your innovation story (as well as your potential innovation) is resonating strongly with your target customers

So, plan ahead. Design your innovation story at the same time you’re designing a compelling innovation value proposition and innovation experience. Think about what people will say about your potential innovation as they begin using it. Show it to people and ask them for feedback about your potential innovation. Craft an explanation for it, build an education plan, and test both. Take all of what you learn from asking and testing these things to begin crafting your innovation story, while also refining the design of the product or service, and the experience of using it, to make both more compelling. In doing so, at the same time you’ll also make help your innovation story that much more powerful, and increase your chances of achieving innovation success!

If you need help telling your innovation story, I can help you on the tactical side (commissioned articles, white papers, webinars, collateral, keynotes, workshops, etc.) or by building you a complete innovation evangelism strategy (for an external audience, an internal one, or both). Click here to contact me.

This article originally appeared on CIO.com

Image credit: Dreamlightfugitive.wordpress.com


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That’s Innovation with Two V’s

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innovvation starts here

Should innovation be spelled with two v’s instead of one?

With so many words starting with the letter v being so central to innovation and rolling up into two even more powerful v words, maybe we should spell it innovvation to help organizations remember to focus on the two keys to successful innovation:

  1. Value
  2. Veracity

The Importance of Value to Innovation

The first v in innovvation is value. Value is such an important v that you will hear me say often that Innovation is All About Value and is composed of three elements:

  1. Value Creation is pretty self-explanatory. Your innovation investment must create incremental or completely new value large enough to overcome the switching costs of moving to your new solution from the old solution (including the ‘Do Nothing Solution’). New value can be created by making something more efficient, more effective, possible that wasn’t possible before, or create new psychological or emotional benefits.

  2. Value Access could also be thought of as friction reduction. How easy do you make it for customers and consumers to access the value you’ve created. How well has the product or service been designed to allow people to access the value easily? How easy is it for the solution to be created? How easy is it for people to do business with you?

  3. Value Translation is all about helping people understand the value you’ve created and how it fits into their lives. Value translation is also about understanding where on a continuum between the need for explanation and education that your solution falls. Incremental innovations can usually just be explained to people because they anchor to something they already understand, but radical or disruptive innovations inevitably require some level of education (often far in advance of the launch).

All of the details of what each of these three keys to innovation success are reside in my previous article Innovation is All About Value. It’s well worth the investment of time to read it.

The Importance of Innovation Veracity

A few years ago I wrote about the importance of innovation veracity and how when it comes to innovation, veracity is all that matters. As a quick refresher, let’s look at the definition of the word veracity from our friends over at Merriam-Webster:

Veracity

1: devotion to the truth : truthfulness
2: power of conveying or perceiving truth

So, veracity is the second v in innovvation. There is probably no better way to spend your innovation time than to spend it identifying the right customer insight and the right way to communicate the solution with customers which you’ve created to serve the insight.

For the three components below that will help you get to veracity, I must give credit to the documentary A Good American (a must see). I will stay away from the politics of the movie so I don’t give away the punchline, and just say that it profiles the work of a group of computer scientists who designed a system to protect American citizens from terrorism at a lower cost and with greater privacy protections than the system that was eventually funded and profiled in a different movie – Snowden.

It’s probably no coincidence that Oliver Stone was involved with both films, but that fact is of course irrelevant to the discussion here. What is important is that the film A Good American contains great monologues by the protagonist that provide insight into the power of meta data.

As an innovation coach what’s important to me so I can help a wide variety of clients, is not the particular context of any particular client, so much as the meta information in a variety of applicable tools and frameworks that I collect or create to serve them. What’s important are the insights that can be applied across all industries and all innovation contexts.

What I’ve been able to extract out of this particular film and into the innovation context, so that I can share them with you, are the protagonist’s view of three components that help you identify signals and drive the transformation of DATA into INTELLIGENCE (or innovation veracity in our context), and they are:

  1. Volume – in order to derive meaningful conclusions you need a lot of data inputs, in this case, lots of idea fragments (ideas come later)

  2. Variety – multiple perspectives are necessary to avoid blind spots and increase the potential for connecting idea fragments

  3. Velocity – volume by itself is not enough, momentum is important too. You have to keep Stoking Your Innovation Bonfire

Conclusion

By focusing on value and veracity in our innovation efforts we will arrive at the most important goal of our innovation pursuits – and yet another v – Victory!

So dig deeply to understand where value comes from in your context, and then keep digging. Only when we truly understand the sources of value in any particular context can we create new sources of value for the value consumers in that context, create the proper means of accessing the value, and translate that value for people in the context and in adjacent contexts that might expand the consumption of the new value.

And strive to also understand the indisputable truths in your context that will enable you to achieve the veracity and the resonance you will need to renew the organization’s permission to exist in your context, fuel your continued success, and ensure your next victory.

Download the PDF version here:

Innovation Should be Spelled with Two V's PDF

Keep innovating!

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Innovation is All About Value

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Innovation is All About ValueI’ve been talking for a while now as an innovation speaker how crucial value is to innovation. It is no consequence as a result that value sits at the center of my definition of innovation:

Innovation transforms the useful seeds of invention into solutions valued above every existing alternative – and widely adopted.

In this definition you will also see that I draw a distinction between useful and valuable, and I develop it further in my book Stoking Your Innovation Bonfire – the following is an excerpt on the topic from the book:

“Often usefulness comes from what a product or service does for you, and value comes from how it does it. If you’re looking to truly deliver innovative products and services into the marketplace, then once you succeed at the designing and developing the ‘what’, don’t forget to also focus on achieving excellence in the ‘how’.”

One of my favorite example of the useful versus valuable distinction is the mousetrap. Despite the hundreds or thousands of patent applications submitted every year for new mousetrap designs, most people still purchase the same simple snapping mousetrap that you see in cartoons and that has been around for a hundred years. The mousetrap is a great example of how easy it is to generate innovation investment opportunities and how difficult it is to create something that is truly valuable.

This distinction between useful and valuable is one that you must seek to understand and by turning this into a lens through which you can look at the potential of your innovation investment opportunities, the higher the return you will have from your innovation portfolio.

Speaking of which, maybe we should stop talking about idea generation, idea management and idea evaluation and instead begin thinking about ideas as innovation investment opportunities. Just changing the language we use in talking about innovation can change the way we think about things and the outcomes that we are able to generate. The images we choose and the language we use is incredibly important and we’ll discuss this in more detail here in a moment. But first I would like to share my innovation equation to counter the popular (innovation = idea + execution) equation. I like to say that:

Innovation = Value Creation (x) Value Access (x) Value Translation

Now you will notice that the components are multiplicative not additive. Do one or two well and one poorly and it doesn’t necessarily add up to a positive result. Doing one poorly and two well can still doom your innovation investment to failure. Let’s look at the three equation components in brief:

Value Creation is pretty self-explanatory. Your innovation investment must create incremental or completely new value large enough to overcome the switching costs of moving to your new solution from the old solution (including the ‘Do Nothing Solution’). New value can be created by making something more efficient, more effective, possible that wasn’t possible before, or create new psychological or emotional benefits.

Value Access could also be thought of as friction reduction. How easy do you make it for customers and consumers to access the value you’ve created. How well has the product or service been designed to allow people to access the value easily? How easy is it for the solution to be created? How easy is it for people to do business with you?

Value Translation is all about helping people understand the value you’ve created and how it fits into their lives. Value translation is also about understanding where on a continuum between the need for explanation and education that your solution falls. Incremental innovations can usually just be explained to people because they anchor to something they already understand, but radical or disruptive innovations inevitably require some level of education (often far in advance of the launch).

Done really well, value translation also helps to communicate how easy it will be for customers and consumers to exchange their old solution for the new solution. My favorite example of poor value translation and brilliant value translation come from the same company and the same product launch – The Apple iPad. It’s hard to believe, but Apple actually announced the iPad with the following statement:

“Our most advanced technology in a magical and revolutionary device at an unbelievable price.”

This set off a firestorm of criticism and put the launch at risk of failure. But amazingly Apple managed to come up with the Out of Home (OOH) advertisements with a person with their feet up on a couch and the iPad on their lap (see above) by the time the product shipping. If a picture is worth a thousand words, this particular picture will probably end up being worth billions of dollars to Apple.

Never Forget!

Value creation is important, but you can’t succeed without equal attention being paid to both value access and value translation…

Because innovation is all about value…

Value Creation (x) Value Access (x) Value Translation = Success!

Click here to see the ‘Innovation is All About Value’ video

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