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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.

 

Open innovation is a frequently-used term that brings a variety of imagery to mind: collaboration, intellectual property, startups, and co-creation. But most importantly, open innovation involves “combining internal and external ideas” to bring new business concepts to life. As an innovation strategy, open innovation serves as a pathway to integrate external perspectives (i.e., from users)  into the development of a new business offering. 

Simply put, open innovation involves accessing and exchanging knowledge between people in your organization and people working externally. The goal is to support innovation by generating new, high-quality ideas that can help create a long-term competitive advantage in the market. For an established company, open innovation can be implemented by collaborating with individual people, other organizations, suppliers, and even startups. The flexibility of how open innovation is pursued truly makes it a one-size-fits-most strategy! Do you agree? Please let us know your opinion in the comments. 

Why Pursue Open Innovation? 

Companies choose to engage in open innovation because of the various opportunities for growth, learning, ideas, and other benefits of increasing innovation activities. Also, mitigating the risk of innovation is one reason companies pursue open innovation. If the market is involved in the innovation process, achieving idea validation then ensures that a new innovation will be accepted by its market. Below are some of the key advantages of pursuing open innovation: 

Speed Up the Innovation Lifecycle 

Applying open innovation as a strategy to developing a new product can speed up the time from conceptualization to commercialization. When a company introduces the necessary external experiences into the innovation process, this combination of resources and knowledge together leads to a faster innovation lifecycle. For a product-oriented company, speed-to-market is crucial for success, so open innovation can be a great fit for this type of firm.  

Gain New Knowledge 

Open innovation is centered around gaining access to new knowledge, which can be accomplished by partnering with external organizations or individuals with a specialized skill-set. By applying new knowledge to a company’s project (or product or problem), the introduction of new ideas and perspectives can lead to new value creation and innovation. As a side-benefit, access to new knowledge and learning opportunities can help employees evolve their careers in your company. 

In the Deep Innovation Design methodology, the ideation process involves an analogous search in which innovation participants compare unrelated (but similar) industries, companies, or sectors in order to derive inspiration by translating the understanding into their own company’s dynamic. Analogous search can also be accomplished through open innovation by incorporating unrelated (but similar!) partners, suppliers, or organizations into a company’s innovation process. The introduction of a radically different way of accomplishing a task or workflow could lead to successful innovation! To learn more about Deep Innovation Design, you can check out this TED Talk or read more in this blog post

Benefit from the Customer Experience

Collaborating with selected customers (i.e., highly-engaged users) is an effective way to generate new insights about customers’ usage of your products, services, and/or perspectives on your competition. Interacting with highly-involved customers opens the doors to innovative ideas. These individuals likely have experience-based opinions around your company’s current offerings or other ideas on how to improve. Including customers in your innovation or ideation process increases the likelihood to compose and capture original ideas. Since an idea is a composition of past experiences according to recent discoveries in neuroscience, involving the experiences of the end-user can augment the ingenuity of the innovation team. Customer interaction through open innovation can lead to differentiating your company further from the competition, save time, and mitigate risk. 

Are you interested in more resources on open innovation? We welcome you to explore our upcoming webinar: The Strategic Value of Open Innovation on March 11, 2021. 

Risks to Pursuing Open Innovation 

Of course, it is important to mention the potential hazards of engaging in open innovation. Some companies may choose to avoid openness in their approach to innovating in order to eliminate the risk of revealing company know-how with external parties. As such, vetting potential partners, vendors, and collaborators is important before exposing internal processes and practices! However, the benefits and possibilities produced by open innovation significantly outweigh the risk of sharing too much information. 

Thank you for reading! What do you think are the pros and cons of implementing open innovation? Please share your ideas in the comments below. 

What can be done to make your organization more innovative?

The COVID-19 pandemic is changing the rules for conducting business. Now more than ever, innovativeness is one of the essential characteristics that a company needs to develop in order to stay competitive in the changing economic landscape and new trends in consumer behavior. In order to keep your customers happy or attract new customers, the introduction of new business services, products, or processes will be the key to ensuring your organization’s future success. So, how do you foster a working environment that supports innovation within your organization?

In this post, I’ll discuss four proven strategies to enhance the innovative dimension of your company.

1) Embrace a ‘Freedom to Fail’ Culture

Let’s consider 3M, a multi-billion dollar American company, as a shining example of an enormously successful company that is known for fostering an innovative work culture by allowing employees the Freedom to Fail. As pointed out by Art Fry, the inventor of the Post-It Note at 3M, companies that wish to empower the innovative minds within the workplace need to provide freedom to employees: the freedom to fail and freedom to learn from the missteps.

The lesson that freedom can open the door to innovativeness can also be applied to the design of job roles. 

As research shows, flexible job roles can engender more participation in innovation. For example, If you are in the position to hire, instead of creating a bulleted and rigid job description, consider providing room for the next person you hire to mold their responsibilities as they grow into the role. When given the space to think outside-of-the-box of a job description, people will notice opportunities for innovation that they might not have recognized otherwise. The idea is to support everyone in your organization on the quest to identify areas of innovation and provide the space for exploration. 

2) Promote Cross-Functional Communication

When it comes to innovation, cross-functional collaboration in the workplace leads to a greater exchange of thoughts and expertise that can spark the creation of novel ideas. As Gary Hamel said, “too many companies define themselves by what they do rather than by what they know”. Bringing cross-functional teams together to solve company problems is one excellent way to tap the innovative potential of your organization. 

Multi-disciplinary collaboration and coordination are necessary for a new business idea to succeed in concept development and become an innovation. Companies with siloed business departments face an extra challenge in implementing new business concepts since the responsibility to produce innovation is split across different units. If these units experience poor communication, the odds that a new product or service is quickly (or successfully) brought to market are marginal. Both cross-functional and open communication are critical to fostering a culture of innovation in the workplace.

Next, we’ll dive deeper into the importance of differing perspectives when it comes to innovating. 

3) Spark Creativity through Diversity

Creativity includes more than innovation, but innovation inherently includes creativity. At BlueCallom, creativity is treated as the ability to compose ideas by searching the mind for correlations between various lived experiences. Being creative allows us to develop novel concepts. In order to foster an innovative workplace, individual creativity should be celebrated as an organizational resource. It is no secret that when people of different backgrounds and skill-sets are brought together, they can collectively generate great new ideas.

But, what is actually happening through this exchange that enables the creation of potentially breakthrough ideas? Creative abrasion, which is described as a process where different, sometimes clashing, perspectives are integrated (Source: HBR). In a nutshell, this means that in order to cultivate a working environment that leads to innovation, it’s absolutely critical to avoid an innovation monoculture of experts.

At BlueCallom, the Innovation Dream Team is a stage in the Innovation Journey which supports your team to assemble a diverse group of people to support your innovation vision. BlueCallom’s neuro innovation management software will help guide you through this team assembly process with a focus on diversity. 

Regardless of how innovation is handled in your organization, whether it’s a separate unit or a decentralized program, ensuring that people with diverse backgrounds and starkly different approaches are included in the innovation generation process is a productive step towards building a culture of innovation. Unleashing creativity through the diversity of thought is key.

4) Implement an Innovation Management Process

How do you get from a great idea to a tangible innovation?  The answer lies in designing a process that supports innovation within your organization, in other words: innovation management. It’s proven that having a structure and a set of common guidelines in place supports innovation. 

While most existing innovation process models are catered to producing incremental innovations, meaning modest improvements to existing products or services,  BlueCallom has developed a twelve-step innovation methodology with the goal of generating breakthrough innovation. The core of the BlueCallom innovation methodology lies in the ideation process and a technique called Neuro Ideation. Neuro ideation is a brain-stimulating ideation process that unlocks ideas by harnessing the collective creativity from individual experiences. To learn more about neuro ideation, you can check out this webinar or this blog post

Are you interested in more actionable insight into managing innovation? We welcome you to explore our Deep Innovation Design online course

Thank you for reading! Is there any strategy that has worked well for your company that was not mentioned here? If so, please add your comment.

In a recent research project, interviewing or discussing the entire innovation process in mid-market to global enterprises,  we found a high concentration in 7 areas of counter-intuitive behavior. We have been aware of 5 of them but No. 2 and 7 were also new to us. We will continue expanding our research effort.

1) RESEARCH TRAP

Having trouble analyzing your market to discover real innovation opportunities or risks to get disrupted?

STATUS QUO
Today we ask questions hoping to hear that our customers tell us what they need and how you can improve. We ask far too many questions. The results are at the very best improvements for the hear and now – never innovation.

WHAT YOU CAN DO
Using a methodical approach for a needs & dreams analysis leads to current and future visions. There are only two times one question. What is the best possible product for you? And in a different interview another question about their dreams. Then it’s all about the analysis of that two times one question.


2) EXPERTS TRAP

Are you still working with innovation teams that are loaded with experts and only a few market-facing minds?

STATUS QUO
The majority of innovation labs are assembled with top experts. If you add more, you get more of the same but it is impossible to get to groundbreaking innovation.

WHAT YOU CAN DO
Assemble a highly diverse Innovation Dream Team with carefully selected talents – not skills. It’s all about intelligent team compositions.


3) BRAINSTORMING TRAP

Are you still using yellow post-its, whiteboards, and brainstorming as your top ideation tools?

STATUS QUO
Ideation is done in one, two, or three brainstorm meetings. But our brain is not releasing deeply rooted groundbreaking innovations. Because it is structured to work very differently.

WHAT YOU CAN DO
Learn all about Neuro Ideation, how our mind composes thoughts and ideas, and how we can stimulate it to release amazing concepts in just a few weeks – yes, it isn’t just a brain dump.


4) CREATIVITY TRAP

Do you feel you are super creative only the infrastructure and organization is not up to par?

STATUS QUO
The majority of innovation center members reported that they feel they are exceptionally creative but are limited by the organization, infrastructure, or otherwise.

WHAT YOU CAN DO
Review the degree of impossibility of the idea and conduct a methodical market validation. You will know in just two weeks if organization and infrastructure are the biggest limitations. In most cases, it is a natural misperception.


 

5) APPROVAL TRAP

Struggling getting your executives finance and approve disruptive innovation concepts?

STATUS QUO
In particular, the most innovative ideas fail to get attention, financial support, and approval from the executive teams.

WHAT YOU CAN DO
When learning about Neuro Ideation it becomes obvious why most disruptive ideas get initially rejected, no matter from whom. “Experience Transmission” is part of the staged Financing Method.


6) EXPERIMENTATION TRAP

Are you still believing that experimentation, pivoting, and prototyping will unfold all of a sudden a magical innovation?

STATUS QUO
The idea that experimentation, pivoting, and rapid prototyping is a preferred innovation method. Fail and fail fast to try as much as possible. If we don’t know how our mind composes ideas, it is our only way to move forward.

WHAT YOU CAN DO
Build your target innovation on the needs and dreams analysis, compile the inputs, and conduct Neuro Ideation sessions, involve the management in all episodes. You will experience an unimaginable logical result that is fundable without random experimentation.


7) THE GUESSWORK TRAP

Are you still HOPING you have a great idea, HOPING your customers will like it, HOPING you get the funding, and HOPING it will be a success?

STATUS QUO
The act of innovation is largely built on hope. Even though nobody would actually admit it.

WHAT YOU CAN DO
Think through the entire innovation life cycle from finding out what and where to innovate all the way to bring such innovation successfully to market. Explore the Deep Innovation Design model. You may notice that the Neuro Ideation method has a far-reaching influence on all facets of the Innovation Life Cycle.

 


Obviously you can manage the “Status Quo” with a project management tool. But isn’t that making something dysfunctional even worse? Prior to founding BlueCallom, we did that too – and despite the love and energy for innovation, the process never really excited us. We just didn’t know why.

After learning a lot about neuroscience and how ideas are composed in our minds, we created the neuro ideation method. Little did we know that Neuro Ideation is changing the entire Innovation Life Cycle and unfolds all of a sudden a logical, natural, and manageable innovation flow.

 

Hope it was insightful.

 

Innovation is an extremely counterintuitive business.

For most people outside the innovation space, Innovation means radically new or significantly improved products. Interestingly enough, product innovation is the least successful model. There are various ways to innovate. Highly successful and radically disruptive innovations today come from business model innovation. For instance, in my old company, Computer 2000, we changed the business model for tech distribution from the ground up. With our tiny startup in the 1980s, we took on competitors of multi-hundred million dollars in revenue. It looked like the chance to survive is exactly 0.00%. Today it is a $37 billion business leading the tech distribution in the world. And still, most competitors did not notice the difference and why we could become a global market leader. It was a business model disruption that went unnoticed. Another example is Airbnb. The company caters to travelers’ needs to stay in a more individual apartment or house instead of a small room in a hotel. Hotels, however, perceive the competition as a price war since there are less expensive apartments too. The hotel industry managers, who never understood the competition, fought back with legal acts, and did not compete on the service. As a result, they never brought their services in alignment with customer needs. Zappos, an online shoe dealer, changed both. Their business model and committed to organizational innovation. Soon thereafter, they also started an experience innovation project and became a great example of multi-facet innovations.

Big Five Innovation Types

 

Obviously, the topic can split even further. Still, we realized that these five innovation types need different approaches, different methods, have different financial or operational impacts, and call for a different innovation team composition.

P a r t – 1

In this first of five posts, I will share experiences, concepts, and product innovation definitions.

Product Innovation

Focused on the product side. This is the classic way to innovate and the most obvious to be recognized by the market. However, it is also the easiest to copy and to outperform quickly. Product innovation offers room for different degrees of innovation like a profound improvement of a product that changes the way users work or introduces a radically different product that may change a whole industry segment. Competing with product innovation is oftentimes done by starting a price war, and very quickly, the innovator may be forced to reduce pricing, increase marketing effort, or take a much longer time to grow market share. Alternative products as such innovation can quickly substitute product innovation is the most obvious, the most visible, and the fastest to understand. In the past 20 years, business model innovation, experience innovation, or organizational innovation continuously won over product innovation. Probably one of the best examples is the automobile industry. Companies fight on the product level: electric motor or combustion engine. One company, Tesla, does not lead on the product level but uses one of the hardest nuts to crack, multi-facet innovation.  On the surface, it is, of course, the electric car. But when looking under the hood, not literally speaking, it is the business model innovation, the organizational innovation, and the experience innovation that makes the company the market leader despite having a much smaller production volume. While the global awareness for Tesla was achieved with its super fast and wide-ranging electric car plus its early engagement in autonomous driving, the whole wide-angle view of the Tesla management, including building the charging stations and the gigantic innovation on the battery side, came from an organizational innovation thinking, the way the cars can be configured and ordered and how easy it is to understand what a user gets is part of the experience innovation, the whole pricing pressure, initial losses and ways the cars get sold is part of the business model innovation. No other car manufacture in the world was so innovative on all fronts and took the automobile no longer as a single product – but a part of holistic user experience. Another example is Microsoft. It’s no news that Microsoft never invented a single product. The operating systems, DOS, and Windows have been acquired, and so were all the office products, the SQL server, and other tools acquired. So one could say Microsft is the least innovative tech company in the world. All they did is integrated all the products and sold them under their own brand. Many are still not fully integrated – 30 years later. Instead of putting all the resources, time, and money into building the solution, they needed to fulfill their vision they acquired them. Microsoft’s real innovation is to create a user experience through integration and seamless exchange of data that nobody else saw as important. Nobody else did as well as they did. The experience innovation did not need a product but an architecture. The other innovation was a business model innovation. From the very early days, they committed not to build their own computers but pushed computer manufacturers to use their software. The non compete commitment from Microsoft was compelling enough to get an exclusive commitment from the computer vendors. And knowing that all the office apps will need their operating system was good enough to give the OS away for peanuts. Business model innovation and experience innovation were strong. Understanding how the company operates and what they offer was so confusing for most competitors that nobody cracked their dominance – till today. As we will discuss other innovation types in the following posts, you will see the difference of those innovation types relative to the ‘good old’ product innovation. You will see that product innovation is not going away – it’s still an important part of an innovative business. Product innovation is becoming a commodity – but is no longer a differentiator.

#ProductInnovation

In the next parts, 2, 3, 4, and 5, we will go into the other innovation types’ details. Here just a quick snapshot to put the above in context.

Experience Innovation

The most effective way to innovate, only recognized by users, and communicated through advocacy. Experiences include general customer experience all the way to entire entertainment solutions such as theme parks or highly interactive restaurant types, and lately, space travel. Experience innovation is very hard to copy and very hard to compete with. Usually, it takes highly creative minds to piggyback on a concept and develop a different model that makes the experience unique.

#ExperienceInnovation


Business Model Innovation

The most successful way to innovate with a big impact on the industry. Typically, business model innovation goes hand in hand with experience innovation. It is the hardest innovation type for any competition to copy, even to compete with. Changing a business model is hard enough for a business to develop – it takes years for the competition to emulate and follow. Business model innovation has been the most successful type of innovation in the past 20 years. The biggest number of business model innovations emerged from the US.

#BusinessModelInnovation


Organizational Innovation

Innovation within the organization, mainly for process acceleration, customer experience, resulting in increased profitability. It is tough to copy (if not done by consultants), making it very hard to understand from the outside and even the inside. Organizational innovation often requires a deep injection of new processes, different employees, and often a different management team. In large organizations, hundreds or even thousands of people may be affected by organizational innovation when they cannot unlearn and learn new ways of conducting their work. One question quickly rises to the top: “Is innovation killing jobs or the wrong team killing innovation?”

#OrganizationalInnovation


Structure Innovation

Supra-Enterprises, companies bigger than 25,000 employees, seem to have the hardest time to create truly ground-breaking innovation. In particular, in the western world, Top Executives, Board, Investor representatives, Unions, Industry associations, local government representatives, and maybe more have to agree on creating a new leadership structure to bring innovation forward. Inventing disruptive solutions often require major changes in the current teams as skills and experiences may shift significantly. Disruption in the automotive, energy, food industry requires knowledge and deep experiences in those industries not only on the enterprise side but also in external structures. A startup as a small company can go under the radar – a public company cannot.

#StructureInnovation


 

After Corona (Covid-19) there will rarely be anything as it was. The understanding of the fragility of our global economy, the huge digital divide, our ability to collaborate, and much more is changing right now faster than ever before. And there is no reason to go back.
We are experiencing an amazing transformation and shift, realizing what our various societies are capable of under pressure. What the most powerful people in the world failed to achieve in the past 10+ years, managed a 0.3 µ small virus — Global Digitization within 3 months.

Massive digitization amplification

The amplification in connectedness, however, is also exposing a widening gap between digitally empowered people and the still massive digital illiteracy. Digital Interaction is a skill. That skill is composed of fast cognitive recognition, heightened content differentiation, a digital body language, multi-language communication, the ability to cut loose from old needs that every exchange needs to be physical, understanding the power of asynchronous communication and much more. We learned to walk, read, write, speak, hear, and now we extend all these skills into the digital world that is no less real than our physical world. Once it is experienced over a timeframe of 6 months more people will want to keep and expand those powers than go back.
One of the big questions is arising: Will the digital literate look down on others and enjoy their added powers or will they help to elevate those who have a hard time to expand their capability of experiences?

Profound changes in production

Another gap is widening to a degree that most people cannot even comprehend the consequences. Our global economy lost trillions of dollars almost overnight due to the lack of production continuation strategies. Companies with a very high degree of automation could continue to have their robots and autonomous machines run and produce, and even shift gear to produce what’s needed. Those doing pretty ok. Those that require armies of workers have all of a sudden multiple challenges all at the same time: Production if anything at all, is only possible in a very limited capacity. Plus, the social liability having to send people home by the thousands. And, opening doors for the competition to come in with more automated companies. On top of all the fully digital businesses rise to phenomenal heights in value and revenue. The consequences may be dramatic: In order to compete in future crisis – no matter in what form or reason, Large manufacturer will need to substantially increase their degree of automation in production, digitization in processes and world market interactions – not for profit improvements but sheer protection of production continuation AND to ensure product availability for our ever more complex society. Even political pressure is already on the horizon that business continuation plans and capabilities to maintain the product flow in the local society must be ensured. What was thought to be Artificial Intelligence, that takes away jobs just because we can, is now a very different reason. Some companies will not even survive this pandemic – but a next pandemic may increase the closing of businesses and jobs by order of magnitude. Once the pandemic is over this effort may actually just begin.

Accelerating Innovation

We have been working under huge pressure to modify our Deep innovation Design program so that a nine-month program can be run as a crash course in six weeks. In order to train as many scientists as possible to move from experimentation to a methodical ideation process we needed to move from in-person training to digital – but moreover from 25 people classrooms to online classrooms with some hundred attendees if necessary. Every top educator would say it is crazy and cannot work. But we don’t even had an option, other than making it work. Innovation is seen all over right now – with or without professional support. The degree of ingenuity hasn’t been that high for decades. New types of virus testers pop up in almost every industrialized nation. We see all kinds of innovative solutions, which only needs a bit more coordination and information flow. And all this will not stop after the pandemic is over. Also here it will actually begin to fully unfold.

Sanitation

Will we go back to be dirty and sloppy after the pandemic is over? Sure, some will, but the majority most likely will keep the positive habit of more careful hygiene.

Keeping relationships online

Will we go back to always meet people face to face for everything we want to discuss. Of course not. We appreciate the learning that a quick video call is for both parties quicker and more efficient. For sure we will remain to be social and want to meet people in person – at least the first connection. But we don’t need to meet for every little detail.

Home Delivery

Will we go back to shop for everything by going from shop to shop? Most certainly not. Of course, we will still go shopping, having the experience and the fun doing so – but the hugely increased percentage of shopping online compared to the past will not go back to “normal” because the majority has a whole new set of experience by now.

Modernizing Operations

Will we go back to endless considerations, pilot projects and eventually still not upgrade? Only the very weak companies will. Those who realized how much faster we are doing things right now, will keep the pace – and if it is only to not let the competition take over. My old mantra: “Speed is more important than perfection” found its biggest proponent being a virus.

Home Offices

About ten years ago home offices have been seen as a large part of a companies way of workplaces. Why did it not work out? Nobody did actually try it for a more extended period of time. Now we do. We get quickly used to do it even full time for weeks. We chat regularly with the team, exchange notes via WhatsApp or email. Meetings are much shorter and also if they are still mega long – everybody can work while some others ramble on. The only short interruption: “can you still hear me”. :)

The list gets longer every day. Every week, new experiences carve out deepening neuro-pathways in our brain that make us learn without even knowing that we learn. And every adult between 30 and 50 learned faster than ever before. Not only about dealing with a virus but also ourselves our needs, and our capability to adapt.

What is your learning ?

How do you see the near post-corona future? What do you hope will change when we finally eradicated covid-19 or at least contained it relatively well? Please share your thoughts – so we all can learn from each other!!!!

THE QUEST FOR MORE INNOVATION

In the last five to ten years, pretty much any business and any government was pushing for more innovation. But if somebody was asked “How do I innovate? Tell me step by step”, there was no tangible answer. When I was asked that very question, in particular the “step by step” part, it daunted to me, that there was simply no answer that could satisfy this question. Tens of thousands of consultants help people to “open their mind”, other use the “design thinking” model to process ideas – actually very well. But the question remains: “How do you CREATE those innovative ideas” in the first place – so you can then process them in any of the models!

INNOVATION ON DEMAND

Innovation, was an accidental event – a combination of many instances, experiences and the brain pushed out an idea. In some cases, those ideas have been big enough to warrant starting a whole new business. But today, we have a situation where we don’t want to have an accidental brain flash leading to a possible innovation. In times where we have a crisis we actually would want to have solutions on demand.  But as long as we don’t even know how ideas are created, we are far away from creating ideas on demand.

MAYBE THE BIGGEST SHIFT IN INNOVATION HISTORY

Neuroscientists helped me understand that human beings are not really creative – we can only COMPOSE ideas from past experiences, from whatever we saw, heard, felt and so forth. All our daily experiences are actually get associated with existing experiences and create some interesting IDEAS of which we actually don’t really know. The biggest idea machine is our mind when we sleep. There is much to explain but the net of it is: We are not creative and we create ideas by the millions. So what is the problem?

Our historic evolution, our culture, our education and our brain itself poses a problem: It is conditioned to allow only the most obvious and the least demanding ideas to pop up. Only one in a trillion or less is actually making it from our right brain to the left and stimulates a communication between the two, that forms a “thought” that may break through all the other barriers. And once we understand that process, we have the foundation for creating innovation on demand, like we create a house or bridge or something as simple as a paper plane.

DEEP INNOVATION DESIGN – PoC

in 2016 we began our first careful attempts to help startups to come up with disruptive business models. What was thought to be a “one of a million” chance, turned out to be better than 50%. Half of the startups in that, for us historic batch, were creating a disruptive model – on demand. They created what we call a “Disruptive Moment”. Disruptive moments are the part in a business model that will push competitors to change their course in order to catch up with these startups. It was the first version of a Prove of Concept (PoC). In the past two years we went deeper into the “mechanics of our mind”. We learned what we needed to actually DO to play with our billions of neurons and synapses to form those innovative ideas. After two years of work we found an early concept that works well enough to come up with an innovative solution, whenever we want. It was in itself a innovative concept to create innovation. We called it the “deep innovation design method”.

Four ‘T”s, one “M” of Deep Innovation Design

1) TALENT
We need people who have a “talent” in creating innovation. Very much like others are talented to play music, paint pictures, drive race cars, cook amazing meals, create fashion, help others or simply entertain people. The talent is the ability to play with ideas, seek experiences, are least pre-conditioned, reject conformity, create their own rules. We have millions with that trait. Almost any toddler has that talent until we press them into a societal system that unknowingly suppresses that talent, but it is still there – hidden. Do you remember: “Don’t be so childish”, “you are a dreamer, be more realistic”, “Focus, learn your lessen, you need to repeat it tomorrow in class”…
2) TEAM
Like a music band, or a football team, innovation is a team sport – if you do it alone you end up waiting for accidental ideas. And one of the most important player in the “Innovation Play”, are the affected people: Customers, users, victimes. If you start the game without them you are doomed to lose. And if your actors (innovators) are all of the same trade, you will lose as well. Diversity is the magic formula. Understanding that part, makes it also very obvious why enterprises CANNOT be innovative. They try to surprise the customer with their ideas instead of co-creating an experience. And their ideas come from a mono culture called R&D center, engineering teams or other experts. And finally the decision maker, who may not be able to ‘experience’ the idea in their mind will need to reject the idea. It almost couldn’t be worse. We learned that ‘innovation’ is one of the most counter intuitive activities humankind is conducting – yet mother nature is pushing it out wherever she can.
3) TRAINING
Our brain is an old machine with lots of upgrades. More upgrades than any other organ in our human apparatus. It is also the most adaptive body part. To overcome some of the 300,000 year old habits and some even go back 5 million years, we need to train our brain. I often wonder how long our children would crawl if we never help them to walk. We need to train our bran in opening a treasure chest that is heavily guarded by about 200 million nerve strands or Axons, our so called Corpus Callosum.
With good talents, a great team and well defined techniques we actually can. And that is the beginning of “Innovation on demand”.
4) TOOLS
You know the saying: “I think my head explodes”- right? And that is always when you reach your capacity limits of learning or thinking, or comprehending – or – innovating. In an interesting way, it’s all the same. Since the last 12,000 years we experience this more and more often and we built more and more tools and ever bigger teams to deal with exactly that problem. We have yardsticks to measure distances much easier than computing it in our brain. We build cranes big enough to lift the weight we need to lift without architecting it over and over again. And today we developed tools, methods and finally technology that shall help us to go through this rather demanding process called innovation. And guess what – it is no different from what athletes perform in their contests, musicians on stage, race driver on the street or on the water, and so forth. Both, athletes and innovators, can easily loos one or two Kilo of body weight, during such processes. When I processed complex ideas or learned entirely new things rather fast, I fall asleep, equally exhausted then after a 20 km run (12.4 miles). Our brain can consume massive energy! That energy consumption is of extreme importance to know, when we try to get ground breaking ideas out of it.
5) MARKET
Here is when the rubber meets the road. There are an estimated 100 Million patents in drawers that have been never used. It shows that the initial value of an innovation, evenpatended is exactly ZERO. The value is only and exclusively created when an idea gets executed, brought to life and into the market. The value then grows with the size of its distribution. We can be as innovative as we want – if we cannot make it available to a market or the market is not interesting, the value remains to be zero. In the end, sales channels, creative marketing, service and support organizations, transport (and if it the Internet) are key to the success of any innovation. This success is seen best, when we look through the macroeconomic lense: A company creates a product. It is sold through distribution and dealer channels, it is shipped across all oceans, it is serviced locally, maybe education organizations provide training, maybe consulting companies help apply the product. At the same time new ideas pop up from companies that build add-ons to that product and create even a market extension. All of a sudden a company with 5,000 employees actually creates 50,000 indirect jobs. That innovation is clearly valuable. The worst of all versions is to create a valuable idea, get a patent and then not only not use it but prevent anybody else from creating it. It is a crime on society – stealing an advancement, just based on self interests.

How to start from here

On April 23, the BlueCallom Group who worked on the Deep Innovation Design Model for four years is providing a free online seminar (webinar) and explaining how the Deep Innovation Design Model works, where you can get trained and how you get involved in this new model. www.society3.com/webinars/. The World Innovations Forum is providing the training programs and support in emerging countries and is able to provide stipends for talented innovators to learn how to be extremely innovative.

How about Innovator or an Innovation Design Manager or Innovation Paradigm Executive?
Find out what suits you best:

The pressure to be more innovative is big. This pressure comes from various sources at the same time. Customers want better, easier, more useful solutions. Investors want to see the company they invested in more agile and more innovative. The board simply amplifies the pressure from the market onto the executive bench. Top talents want to work in innovative companies and the competition from fast growing and scaling young companies on top of all that. A CEO of a global enterprise cannot be the same innovator as the CEO of a startup. But the enterprises can look for innovative talents who may perform that role without taking the entrepreneurial risk of starting and driving their own business.

The Innovator

The title says it all, the person innovates. However, in our today’s complex business organizations, we need to not only think of innovative solutions for customers but also innovative solutions internally. Many marketing departments conduct their business in more or less the same way, with the same KPIS and the same methods like 25 years ago. Marketing innovation can have extremely positive effects on a companies market presence. Innovation itself is another even more dramatic challenge. How can a perfectly organized company with a top level employee utilization craft out time for innovation? Whether for internally or externally faced innovations, the innovator is a top talent that has a wide open mind, is a stellar listener and amazing observer. That person has lots of experiences with which they can compose new ideas and are trained to “play” with their brain and produce ground breaking ideas. The innovator is the person who literally produces innovation without being the expert that actually builds the product or service that will rock the market. The developing and building process remains in the engineering or other specialists hands. The innovator typically would report to a Deep Innovation Design Manager.


The Deep Innovation Design Manager

We all learned that the value of an idea is zero. The value of an innovation grows with its distribution throughout global markets. The Deep Innovation Design Process needs managers with a 360° view of all aspects, steps, processes, stakeholders and activities who can navigate and moderate the process with whole teams, partners, contributors and other stakeholders. He or she is the Innovation Success Manager and would typically report to a Innovations Paradigm Executive or directly to the CEO in smaller organizations.


 

The Innovation Paradigm Executive

In large enterprises with different business units, countless departments and many products need an executive level person to craft a corporate wide innovation strategy, work with the C-Level of the company, coordinate the innovation engagements across all business units and ensure the financial engagements and capital distribution throughout the various projects, run by the Deep innovation Design Managers.

In the new world of Innovation Paradigm Models and Deep Innovation Design methods, innovation is demystified and turned into predictable and manageable activities that can be planned, budgeted, and managed. And to do so, businesses need talents to perform these new jobs.

If this should become your career path, Join one of our free online events.

The Innovation Challenge

Corporations of all sizes, older than 15 years are in jeopardy. It is NOT LACK OF INNOVATION as such, it is lacking the UNDERSTANDING HOW TO INNOVATE. TEST: Tell your teams to be more innovate. The response to the question may be: “Yes, we’d love to do that, but please teach me what I must do to be innovative”. Your team learned to handle machines, compile algorithms, develop strategies and business plans, how to sell and how to market, create a long term financial forecast or how to hire talents. They never learned how to innovate or how to create a disruptive business model. Most even set innovation equal to invention. The real challenge is:
1) We need to understand how one creates ideas in the first place?
2) How these ideas may turn into an ‘innovation’?
3) How do we know that those ideas are actually something the market will buy?
4) When do we invest in such an innovation and how much?
5) How do we organize an innovation process from idea creation to market success?

Not lack of innovation but lack of understanding how to innovate

 

IN SEARCH OF INNOVATION

Most businesses are seriously challenged and try all kinds of ways: Creating an innovation lab, investing in startups, trying to observe young innovators, hire teams to be creative and innovate – and all kinds of random actions in the pursuit of “finding innovation”. This already went on for decades with no serious success. Young businesses continue to disrupt entire industry segments. Whether it is the car industry, the taxi industry, the hotel industry, the mobile communication industry, the micropayment industry, the mobile payment industry, and on and on and on. Who is next: the insurance industry, the airline industry, the food industry, the waste industry, the ITC industry, the automobile industry, the mechanics parts industry, the legal advice industry…  Every industry will experience major disruption in the coming years. And this is NOT because some come up with some crazy ideas and think differently. 200 to 500 out of 1 million startups make it. So that is not much . But those 200 – 500 disrupt any available industry. And will not wait for anybody.

LEARNING TO INNOVATE

Each and every corporation has its own innovations paradigm. Most don’t even know. The innovations paradigm is the entire complex from idea development in an R&D center or innovation lab to successful market entry. Today this is all experimentation, trial and error. And we apply the mechanisms that we know to find out. Yes we need to think very differently – but not how we try today. Funny enough we need to follow age old rules:

  • We need to find out how ideas are actually created and processed
  • Once we understand how our brain works, we can apply strategies to use it.
  • We then will need to dive far deeper into our business ecosystem than ever before
  • And finally develop radically different solutions that unfold an ideal way for customers
  • Leadership in this entire process can make it a repeatable process so one can continuously innovate

Implementing such a “Innovations Paradigm” into the enterprise is far less difficult as it may look, yet it is not done over night and requires the buy-in of the C-Level. When anybody says we need to think like a startup, WE is all of the company. And the key driver is always the CEO – Startup or Global Enterprise. Carl Benz, Henry Ford, Robert Bosch, Graham Bell, Robert Noyce, Steve Jobs, Bill Gates, Larry Ellison, Mark Zuckerberg, Jeff Bezos were all young crazy entrepreneurs when they started. And many of that league are just about to get disrupted from people who think and act different – but that thinking is no secret any more and not unique.

You may want to join our webinar series of how to innovate and how to get your team to true innovation.
https://www.society3.com/webinars/

@AxelS