Innovation speed or perfectionWhat is time to innovate?

The time between the day when the need to innovate is recognized to the day the first version of a prototype is in the market. Innovation speed or perfection? Go for speed any time.

For instance: The need or the dream to have an internet connection in any place in the world, land, or water is as old as the Internet itself. But in 2015, Elon Musk had an idea how to solve it. In Feb 2018, he created a company called StarLink. Today in 2021, we have full coverage, and in the next few years, it will be a standard. By 2025 people will realize that over 30,000 satellites are in orbit and connect all of us any time from anywhere. Look back and wondering how this could happen. Very much how we wonder why there is only one search engine to be considered serious, one computer operating system, one super large social network, one shopping platform, and soon one internet provider. We all heard of StarLink; but so far, nobody dares to compete. Is California or Silicon Valley a time capsule in itself? Time seems to run much faster – but only because we don’t hear a lot from China, in particular Shenzhen.
Only a few decades ago, Shenzhen was a collection of quiet farming and fishing villages. Today, the city is among the world’s leading innovation hotspots—in other words, the perfect location for our Airbus China Innovation Centre (ACIC).

If you want to innovate on Shenzhen speed you got to be even faster. Does it feel impossible? Yes, it does but only due to our massive overhead. If we don’t watch it, we will end like the britsh empire in 1900 or the Roman Empire in 1600 or Egypt or Mesopotamia or or or.

Western innovation labs, where are your results?

Innovation speed or perfection. In the past 20 years, several hundred innovation labs had been incepted. Yet, the outcome is more or less nonexistent. Yes, there had been nice improvements, some fun stuff, and maybe a few marketing Giggs. But nearly no groundbreaking innovation. They came all from startups. Something major may have gone wrong in those “Lost 20 years,” as one of the top Japanese executives told me recently. Everybody looked at startups because they seem to do something right. However, we all know 90% fail, and if you look at them, you will fail too. We all heard it “Innovation needs amazing creativity, and you can’t enforce it” – ok, so make innovation playgrounds with meditation, lego play games, sing together, and do sports together.  Hmmm – the unicorns show relentless execution, amazing speed; they work under enormous pressure. TIME seems to be a silver bullet. Very much like Elon Musks demonstrates it every day. When I founded my companies and watching my peers and the hundreds of startups we worked with, the best of the best were constantly full of adrenaline.

Groundbreaking Innovation in 40 days

We wanted to know:  What is the Innovation speed limit? The answer: 40 days right now. We can create groundbreaking innovation and validate the concept and bring it to market in 40 days. While most people are driven by their schedule, which is driven by others, who drive other agendas, and so forth, we need to put a stake in the ground NOW. The Nespresso Capsul took 15 years from idea to market success. The Tesla automobile took 15 years from inception to market success. Facebook took less than 10 years, Starlink probably less than 7 years. And the upcoming generation will be even faster. The western world already lost the first race against the red dragon in China. But we are used to not give up, to not surrender – to get up and compete.

Dare to compete

Some people use pacemakers to keep their heart beating – what is your business using? In a few days, we start with the global Ingenuity Cup. The promise is to get to groundbreaking innovation in 40 days. So far, most contestants are startups. While under huge pressure to deliver a real innovation for the first time, enterprise teams are struggling to make quick decisions, get approvals, find ways to put all the other administrative work to the side, and are fearful of failing. We MUST break through that barrier.

Dare to break all barriers and walls

  • You have no time? Never say this again. Take the time for what is most important.
  • You need approval? I don’t think so, because you have a mission.
  • You have other e important things to do? Stop innovating – it’s a waste of time doing it on the side.
  • You worry about your career? 5 years without success in an innovation lab is 25% of your career wasted already.
  • The next company won’t take you !!!!

Mr CEO, tear down that wall

Make your innovation teams play by the rule of global markets, global timelines, global competitors, global speed limits, and compete against everything and everybody. Innovation playground time is over. Every unicorn on earth competes with relentless execution, other nations have no rules and no limits. If you spend more time protecting what you have than investing it into future solutions, you, your board, and investors declare the limits of your abilities.

 

Dare to join the Ingenuity Cup even last minute.

Calculating the value of an innovation

BlueCallom Equation IntroductionOne of our early objectives was to easily describe the value of our work. It is not easy as Innovation has so many moving parts and the fact that enterprises around the world are feverishly trying to find better ways to achieve groundbreaking innovation and not just improvement is a testimony for its complexity. We tried to distill our value contribution down to neuro ideation, innovation opportunity discovery, innovation-to-market method, innovation financing, reporting, Innovation KPI framework, multi-user digital canvas technology, genetic computing technology AI usage, and a few other things. One aspect recently rose very prominently in conversations with users and customers: a very close relationship between brilliant ideation and relentless execution. However, there was an inner conflict: It is described in a blog post written a few years ago: The Initial value of an idea is zero. How could something of no value sparked multi-billion dollar businesses and disrupts entire industries if it has no value? It just needed to turn on of course but what value is it then? It reminded me of something I learned in quantum mechanics, that I quantum state can be seen as having two states at the same time. Every idea can too. As we learned from neuroscience, an idea is a clearly defined “object in our brain that is composed of past experiences”.  The trick is to use it or not. Unused its value is zero and used its value turns into one. The value of one is still not a lot but multiplied with execution that leads to exponential growth makes the one incredibly valuable.  Let’s not get deeper into quantum physics as it is just an analogy but look how this concept changes our understanding of innovation.

The two key aspects, that make or break groundbreaking innovation:

  1. Finding a brilliant idea that leads to innovation

  2. Making the idea a reality and bringing it to market with relentless execution

Harnessing the duality of ideation and execution is where BlueCallom makes the biggest difference. Moreover developing the BlueCallom Equation, paved the way for making innovation predictable, creating Innovation Forecasts, calculating an Innovation Lifetime Value, and an Innovation ROI. Groundbreaking Innovation (G)  = Ideation (I) * Execution(E)².

G = I * E² 

The meaning of G

For the development of innovation processes, we needed to make a statement of what we understand by the term INNOVATION, in particular groundbreaking or disruptive innovation is not Improvement. It became even more important when trying to find a way to calculate an innovation value. There are hundreds of different definitions of what innovation means. The following definition is made to make our methods and technology clear, and also what our equation is addressing.

Innovation is the introduction of a
groundbreaking elevation in the way
people do things and ensuring
a successful global distribution.

It often results in disruption, how
industry segments conduct business.

Innovation is not the same as Improvement. For more clarity, we use Groundbreaking Innovation (G)

The creation of I

To get to groundbreaking innovation you need an amazing idea. And since we know, thanks to neuroscience, how innovative ideas get created, we can go one major step further: Making the innovation a reality. Not only by building a prototype but bringing that innovation to life in global markets. Some years ago I wrote a provocative blog post: “The initial Value of an Idea is ZERO” and that has not changed. There have been many known cases where people bought an idea for $1. With that payment, the idea had legally changed ownership. So we can assume that the buy-in of a team developing such an idea has the value of one – assume any currency. The idea is the must-have ignition to innovation, yet has no big value to anybody – yet. The value is created through execution. Every startup knows – it gets embossed in their neurons by every investor. And there is an important effect to be observed: Any successful innovation – ever created – was following an exponential growth rate. Hence the E².  But with no execution: 1 * 0 = 0 – in other words, the lack of execution makes the innovation value zero.

The significance of

  1. Innovation Timeline
    Innovative solutions take quite a while to get accepted in the market. And there is no shortcut. The larger part of the market participants is rather careful and conservative. It took a few years until the name Tesla even made it to News. It took even longer until Amazon became a household brand. The first two years, Computer 2000 and TechData had a tough start. But 10 years later both bypassed 8,000 competitors which never understood the level of disruption our business models had. Today the merged and combined company is doing nearly 40 Billion in revenue. The inflection point when the so-called “Hockey Stick” kicks in and turns the slow start is recognized as part of an exponential growth curve, it is too late for many companies to seriously compete.
  2. Innovation Management
    Managing an “Innovation to Market” process is an ART and a SCIENCE. One of the key aspects of the science part is the understanding that innovative products will never be purchased by conservative customers, which is the largest audience. One of the arts to get it to scalable results is to know when the broader audience is ready to engage. Today the function of “Innovation Management” is widely underestimated or even completely misunderstood. Innovation management could also be called “Innovation Value Management”. It is all about creating value from a disruptive innovation that has usually the DNA of a unicorn – no matter whether it is a corporate or startup unicorn.
  3. Equation
    * An idea, as a result of any kind of ideation, has a fixed initial value of zero.
    * Once a team is intending to use the idea and make it a reality, the value of such an idea becomes one (1).
    * As soon as the innovation is given to users and they see a value for them and start using the product, the value increases above 1. Here it can potentially grow exponentially based on the energy somebody puts into execution. The energy that is put into execution should become proportional to the value growth of the innovation if the execution is done right.

This also explains why some of the innovative products are perceived as “Overhyped” in the eyes of normal observers.  Only after carefully analyzing the innovation’s growth path and rate, capital markets react and may look unrealistic. This was experienced with almost every Silicon Valley IPO and afterward, those technological advances became the new normal and ever more often dominating entire markets. The   in the BlueCallom Equation can now also explain that behavior of seemingly hyped values that turned out to be valuable over time. The BlueCallom Equation is represented in the BlueCallom Deep Innovation Design model as well as in the architecture of the BlueCallom Innovation Management Software (code name ‘deep’).

 

Debunking 100+ Innovation Methods

G=I E² is more than just a formula for groundbreaking innovation, describing the duality between ideation and execution.  It is describing the foundation of any successful innovation effort or process.

* Innovation Team Structure

Brilliant innovation and relentless execution is not a job that a person can do on the side. It’s the opposite – innovation development is one of the most demanding engagements in any business anywhere in the world. The equation also makes clear what the innovation management’s responsibility is.

* Execution – Execution – Execution
It demonstrates the value relation between the idea itself and the execution process after the idea was created. It’s all about execution and that has never been even a consideration in innovation management.

* Time is of essence

It shows the importance of the factor time in the execution from zero to the max. In conventional innovation playgrounds, teams had infinite time. The outcome was zero. Unicorns ran like crazy and that made a huge difference.

* Innovation KPIs
How innovation teams achieve probability calculations, ROI, etc. to develop more robust innovation plans.  Only robust KPIs can indicate performance. The number of idea contributions, the value of the contribution, market validation, innovation confluence data, timelines, budgets, degree of disruption, adoption rates, growth pattern, and more. The number of projects can’t be one of them.

* The end of Innovation Kindergarten
The equations expose why empirical experimentation, pivoting, random brainstorming, and other “exercises” just could never lead to groundbreaking innovation. Lego games and dancing, meditation, and other relaxation is really nice – but cannot be the core of the top job of any industry leader.