"When I examine myself and my methods of thought, I come to the conclusion that the gift of fantasy meant more to me than my talent for absorbing positive knowledge. (Albert Einstein) "
Business Intelligence is usually the approach towards enhanced results. Normal logic and common sense will do the job. There are however situations that ask for a different approach. When the boundaries must be pushed, when something new must be introduced to solve the problem or out smart competition. We often refer to this as innovation, but what is innovation really.
The dictionary gives three possible interpretations;
Sense 1
invention, innovation -- (a creation (a new device or process) resulting from study and experimentation)
· creation -- (an artifact that has been brought into existence by someone)
Sense 2
invention, innovation, excogitation, conception, design -- (the creation of something in the mind)
· creativity, creativeness, creative thinking -- (the ability to create)
Sense 3
initiation, founding, foundation, institution, origination, creation, innovation, introduction, instauration -- (the act of starting something for the first time; introducing something new; ``she looked forward to her initiation as an adult"; "the foundation of a new scientific society'' )
· beginning, start, commencement -- (the act of starting something; ``he was responsible for the beginning of negotiations'' )
Business Intelligence is usually the approach towards enhanced results. Normal logic and common sense will do the job. There are however situations that ask for a different approach. When the boundaries must be pushed, when something new must be introduced to solve the problem or out smart competition. We often refer to this as innovation, but what is innovation really.
The dictionary gives three possible interpretations;
Sense 1
invention, innovation -- (a creation (a new device or process) resulting from study and experimentation)
· creation -- (an artifact that has been brought into existence by someone)
Sense 2
invention, innovation, excogitation, conception, design -- (the creation of something in the mind)
· creativity, creativeness, creative thinking -- (the ability to create)
Sense 3
initiation, founding, foundation, institution, origination, creation, innovation, introduction, instauration -- (the act of starting something for the first time; introducing something new; ``she looked forward to her initiation as an adult"; "the foundation of a new scientific society'' )
· beginning, start, commencement -- (the act of starting something; ``he was responsible for the beginning of negotiations'' )
The first is the introduction of a radical new design mostly of a physical nature. The second refers to the creation of new concepts in thinking and the third to a change in appearance (age, organisation etc.) This is of course only part of what innovation is about.
There are situations where a status quo is reached and there is no need of radical change.
Is the renewal of a pricing schedule an innovation, is the change of packing material innovation or just a change in market approach. I would like to think differently.
Life Cycle Positions
Every product or service knows three lifecycle stages;
The technology stage ( based on the introduction of a radical new technology e.g. electricity vs. steam). At first small innovation steps leap-frog each other in rapid succession. Later on the dominant technical design arises and is no longer a competitive force.
The marketing stage (based on the company’s or product’s image). In this stage functional attributes are added and enhanced. They are competitive until even these enhancements die-out.
In the third stage it is all about production and distribution. The product price is the main driver so new production and distribution formulas will be developed.
In my perception innovation applies to the introduction of a radical new approach. At the end of a products life cycle when cost efficiency is the main driver companies have to find a way out of the snake pit. They are used to work with the dynamics of their own market and it is hard to think out of that box. Common sense is not sufficient to solve the cost/investment dilemma. It is time for creation. Time for something new.
It is well known that true innovations are seldom the result of activities of established companies. With the rise of new technologies the early adopters (often only one or two individuals) create the radical new design.
Can companies that are aware of their life cycle position create or facilitate an innovative environment? I truly think so!. But there are rules to follow.
Innovation process model
First of all you have to realize who you are and where you stand at any time so you will not be taken by surprise when your margins diminish. Secondly you have to have a vision of the future. A roadmap to achieve that future and a strategy framework that gives room and funding to move to forces within or without the company
When you plan to organize innovation you should apply a kind of innovation process model, in which you define steps, targets to achieve and parties to involve. You’ll have to be aware that internal sales of these activities and participation off key personnel are paramount. If you fail to install a mechanism that allows for participation and knowledge sharing you’ll probably end up spending money on a one off project instead of adding permanent value.
In my capacity as business development director for a Dutch based ICT company I had very good experience with my cooperation with communication and marketing staff. All innovations were presented both internally and externally, creating a sense of success with both customers and staff.
The figure above shows how a typical process model could look like. Every stage begins with the plan from the stage before and delivers intermediate management information and information exchange with the standing organisation.
Laws of innovation
I would like to add my laws of innovation in an arbitrary order. Of course this list is incomplete and does not apply to all circumstances. It is mainly meant as a source of inspiration;
Conceptualize ideas and then criticize them and put them to the test.
1. A launching customer is only the beginning
2. Human metrics dominate the success of new innovations
3. Adoption of new services / products do overthrow the market with the speed of human aging
4. Never innovate within the standing organisation, old and new will fade each other out, resulting in high costs and bruised egos.
5. Life cycle behaviour (innovate, optimize, consolidate, produce ) end of life cycle
6. Willingness of organisations to listen to its and other “consumers”
7. New innovations at the end of life cycle are almost always integrated value propositions, rarely created by the traditional market leaders
And specifically for media companies
8. The gravity of content reduces due to the introduction of newer / smaller and more divers carriers (Internet TV, digital TV are mainly theme targeted) e.g. content will circulate faster. BREAK UP THE CONTENT BUNDLES
9. Creator roles will be more distributed due to specific interest / target audiences
And what do you think of John Thackara’s laws posted at www.openingdoors.com . Innovation never sleeps!!
Power Law 1: Don’t think of a new product. - think social value.
Power Law 2: Think social value before tech.
Power Law 3: Enable human agency. Design people into situations, not out of them.
Power Law 4: Use, not own. Possession is old paradigm.
Power Law 5: Think P2P, not point-to-mass.
Power Law 6: Don’t think faster, think closer.
Power Law 7: Don’t start from zero. Re-mix what's already out there.
Power Law 8: Connect the big and the small.
Power Law 9: Think whole systems (and new business models, too).
Power Law 10: Think open systems, not closed ones.
Posted by John Thackara at July 18, 2006 02:54 PM
Open source innovation.
When radical new approaches are needed good logical thinking is normally not enough. New and creative angles have to be found. But how do you generate creativity. Can you stimulate people that run a ground in a complex situation to think differently about the challenges they are confronted with?
Of course you can, but I you need techniques and sources. Fresh views from outsiders, analogies from different markets, products, countries or, highly favoured in scientific circles find analogies in nature. The perception of someone confronted with a dilemma is usually limited to a small circle. Open source approaches can resolve this problem.
Workshops
When you know what or who you are you’ll probably know what to do. There remains one last question. How are we going to do it.
I advise companies to take time to think things over and work together on this issue. I have done many workshops with different types of companies in healthcare, finance, retail, publishing etc. We were well prepared sending questionnaires about the ten most relevant issues to key personnel. The results were always presented by the most senior officer at hand, preferably the CEO.
Although every company requires a different approach there are some issues that have a generic character.
When starting a workshop we always took time to change the group’s attitude, to have them think out of the box. We used poetry, arts, association techniques and made a lot of fun.
Secondly we established the rules of engagement.
o Everybody’s opinion counts .
o All participants are equal
o If you criticize you’ll have to bring in an alternative
And so on..
During the third stage of the workshop we went to the idea generating phase. Everything is possible and criticism is not allowed.
In the fourth stage we went through personal presentations of the current status and the personal views of all participants.
Finally we went back to the idea stage and projected the ideas on the current situation. This resulted in a vision of the future, priorities of change and in the end in a mini business case, which had to be enhanced after the workshop.
The business case was the framework for change and all participants had their share in creating it. All workshops came to the same conclusion.
o We whished we had done this before.
o Finally we had time for each other
o These were the perfect conditions to make us use our knowledge to our advantage
o Now we understand each others challenges
o This improves our team spirit
The execution of the business plan made is yet another issue. You’re your company must specialise in change management itself, because this is only the beginning. Be careful making your company dependent on other companies knowledge. We’ve all seen what the IT business is capable off
We stand at the beginning of an era in which customer relationships will be changing constantly. The company that stays closest to itself will have a competitive advantage
You must realise that these types of innovation are so important that you have to do it yourselves. Implement a change team, look at the governance issues and above all repeat the sessions on a regular basis and evaluate progress.
To address innovation inside a company key personnel must work closely together. In the last ten years I have facilitated workshops in various lines off business like: Health Care, Retail, Finance, Publishing, Logistics and Education.
Let me give you an example of the proceedings
Antwerp September 2003
Gathering of senior executives of a commercial bank.
Topic; Innovation
Quick Scan
We used a method that gives a brief overview of a company’s status regarding innovation. If you use this model, remember to ask your key personnel (ICT, Marketing, Communication, Strategy and Operations to fill out this form. When you aggregate the result into one form you can execute a gap analyses in the form of an open discussion with the professionals involved.
The quick scan addresses various fields like vision, strategy, goals, innovation process, knowledge, people and reward.
The results of the discussion will give insight in;
o Do we address innovation adequately on a strategic level
o What does my company think about its innovative performance?
o Do my people feel free enough to innovate
o What do we need to do next.
We had key personnel fill out the form for the current state and then repeat the same routine asking where the organisation should be.
The answers surprised us because the results differed. It was a fine start to creating the right conditions for innovation. We discussed the findings with the entire staff and drew up an action plan to increase the innovative capabilities of the organisation.
Once you have an idea on innovation organise it according to the two sets of laws I presented earlier.
Summary
Means : The true driver behind innovation is an open eye, an open mind and common sense. This implies the recognition that in certain situation common sense is not enough. Mobilise the right force within your reach.
Message : Innovation is a sign of strategic leadership. The why and how is the message to send. Include all stakeholders.
Media : The best way to facilitate innovation is to free the best minds available and resolve their possible financial worries.
When radical new approaches are needed good logical thinking is normally not enough. New and creative angles have to be found. But how do you generate creativity. Can you stimulate people that run a ground in a complex situation to think differently about the challenges they are confronted with?
Of course you can, but I you need techniques and sources. Fresh views from outsiders, analogies from different markets, products, countries or, highly favoured in scientific circles find analogies in nature. The perception of someone confronted with a dilemma is usually limited to a small circle. Open source approaches can resolve this problem.
Workshops
When you know what or who you are you’ll probably know what to do. There remains one last question. How are we going to do it.
I advise companies to take time to think things over and work together on this issue. I have done many workshops with different types of companies in healthcare, finance, retail, publishing etc. We were well prepared sending questionnaires about the ten most relevant issues to key personnel. The results were always presented by the most senior officer at hand, preferably the CEO.
Although every company requires a different approach there are some issues that have a generic character.
When starting a workshop we always took time to change the group’s attitude, to have them think out of the box. We used poetry, arts, association techniques and made a lot of fun.
Secondly we established the rules of engagement.
o Everybody’s opinion counts .
o All participants are equal
o If you criticize you’ll have to bring in an alternative
And so on..
During the third stage of the workshop we went to the idea generating phase. Everything is possible and criticism is not allowed.
In the fourth stage we went through personal presentations of the current status and the personal views of all participants.
Finally we went back to the idea stage and projected the ideas on the current situation. This resulted in a vision of the future, priorities of change and in the end in a mini business case, which had to be enhanced after the workshop.
The business case was the framework for change and all participants had their share in creating it. All workshops came to the same conclusion.
o We whished we had done this before.
o Finally we had time for each other
o These were the perfect conditions to make us use our knowledge to our advantage
o Now we understand each others challenges
o This improves our team spirit
The execution of the business plan made is yet another issue. You’re your company must specialise in change management itself, because this is only the beginning. Be careful making your company dependent on other companies knowledge. We’ve all seen what the IT business is capable off
We stand at the beginning of an era in which customer relationships will be changing constantly. The company that stays closest to itself will have a competitive advantage
You must realise that these types of innovation are so important that you have to do it yourselves. Implement a change team, look at the governance issues and above all repeat the sessions on a regular basis and evaluate progress.
To address innovation inside a company key personnel must work closely together. In the last ten years I have facilitated workshops in various lines off business like: Health Care, Retail, Finance, Publishing, Logistics and Education.
Let me give you an example of the proceedings
Antwerp September 2003
Gathering of senior executives of a commercial bank.
Topic; Innovation
Quick Scan
We used a method that gives a brief overview of a company’s status regarding innovation. If you use this model, remember to ask your key personnel (ICT, Marketing, Communication, Strategy and Operations to fill out this form. When you aggregate the result into one form you can execute a gap analyses in the form of an open discussion with the professionals involved.
The quick scan addresses various fields like vision, strategy, goals, innovation process, knowledge, people and reward.
The results of the discussion will give insight in;
o Do we address innovation adequately on a strategic level
o What does my company think about its innovative performance?
o Do my people feel free enough to innovate
o What do we need to do next.
We had key personnel fill out the form for the current state and then repeat the same routine asking where the organisation should be.
The answers surprised us because the results differed. It was a fine start to creating the right conditions for innovation. We discussed the findings with the entire staff and drew up an action plan to increase the innovative capabilities of the organisation.
Once you have an idea on innovation organise it according to the two sets of laws I presented earlier.
Summary
Means : The true driver behind innovation is an open eye, an open mind and common sense. This implies the recognition that in certain situation common sense is not enough. Mobilise the right force within your reach.
Message : Innovation is a sign of strategic leadership. The why and how is the message to send. Include all stakeholders.
Media : The best way to facilitate innovation is to free the best minds available and resolve their possible financial worries.
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