Archive for the ‘Innovation’ category

Do We Have Too Many Ideas To Be Innovative?

May 17th, 2011

ideasphoto © 2010 Sean MacEntee | more info (via: Wylio)
Consider this quote about ideas, product development and innovation.  “It’s also important to wipe out the myth that successful new product development comes from a flurry of creative idea generation from the R&D labs.  New ideas are a dime a dozen; the challenge is to shape them into concepts and nurture them into new products with a competitive advantage.”

I saw the quote in an article in the Marketing News.  What year to you think the quote is from?  2011? 2010? No, 1990.

Thomas Kuczmarski wrote those words in an article entitled Shame on America for Bogging Down Innovation.

Two key ideas he brings forth:

1)      Ideas need to be shaped into concepts and nurtured into new products.

We need to work the ideas into more fully formed concepts.  Those concepts need to be thought through, tested, adjusted, tested, adjusted, tested as many times as necessary to create something new and different.

2)      Competitive Advantage

Creating or “copying” someone else’s products or services cannot create a competitive advantage.  Without a competitive advantage the competition will catch up or surpass you.

Crocs Versus UGGs

Consider Crocs shoes.  Everyone and his brother have created knockoffs.  We can purchase a pair in CVS for less than $10.  Contrast that with UGG boots.  There are knockoffs.  However, on the back there is a really big “UGG” that can’t be copied.  The other day, every girl I saw had on boots.  Each one was UGGs.

R&D Will Solve It All

Kuczmarski also went on to deflate the “R&D will solve it all” bubble.  He said, “Moreover, R&D often is the victim of overly optimistic expectations.  At most companies, R&D dollars are being funneled into finding ways to lower costs or improve efficiency of existing products, rather than discovering new inventions and technology that can lead to innovative new products.”

We need to truly perform both Research and Development.  Focusing on implementing Six Sigma or Lean Manufacturing is looking to maximize profits today.  Rather, creating new products and services that will power our businesses for the next decade should be the goal.

The Takeaway

Product Development is a multi-step process that goes well beyond brainstorming or ideating.  Focus on creating products and services that offer a competitive advantage to your firm.

Old ideas or new ideas?  What to you think?  Please comment below.

1)      Do you have a well-developed product development process?

2)      Do you agree with Kuczmarski’s point of view?

3)      Where do you find your ideas for Product Development?

Innovation: Where Can I Find It?

March 15th, 2011

Business Model Trianglephoto © 2006 Alexander Osterwalder | more info (via: Wylio)

Innovation needs to be part of a company’s culture or DNA.  Some industries seem to have more innovation than others whether it is a process or other reasons.  To learn more about industry variations I spoke with Jatin DeSai.  He is the CEO of The DeSai Group.

1. What are the most innovative industries?

High-Technology, Biomedical, Energy, Software and Consumer Products.  A student going to college today should study science and engineering or engineering and business to take advantage of the convergences in the next 20 years.

As an example, the raw science and engineering know how will help to eliminate infectious diseases in the future.  What is missing are the systems and processes.  India and China add tremendous uncertainty and large scale new business models in every industry. They have their own problems, but both are trying to cash in on this unprecedented opportunity to dominate the West. Youth and young adults should capture this opportunity before they get left behind.

2. What industries are ripe for innovations?

The least innovative are the most  ripe.  They will be hurting so badly that they will need to get out of the chaos.  Some industries such as Healthcare, Financial Services (insurance and banking), Pharma, Oil/Coal/mining, Aerospace (especially defense contractors) and alcohol & beverages are where we are focusing.

We predict, that water will the next oil by 2040.  There are serious water shortages.  More desalination plants are coming on line.  Think about the heavy cost of distribution in beverages.  Companies are taking gray water and turning it into clean water at their own plants. Due to climate changes to our planet, water will become a very precious commodity. The lower on the pyramid will suffer greatly. Humans cannot survive without water for more than 48 hours. There is a huge opportunity for innovation here.

3. The media often portrays Silicon Valley as the center of innovation in the US.  Is that true?  If not, where are the centers of innovation?

The largest three centers of innovation it the US: Silicon Valley, Boston/Route 128 Corridor and Research Triangle. Overseas, India has centers in Bangalore, Chennai, Hyderabad and Mumbai, with upcoming places like Noida near New Delhi.  China has Shanghai, Beijing, and Xi’an for the aerospace industry.

4. What is the next big thing in innovation?

Innovating is bigger than a program.  The sexiness will die in 3-5 years because markets will get back into the growth mode and create real jobs.

The next big thing is in the Social Business Model. Our recent article about 20 big insights about the future called “What will Happen in 2011?”  details some ideas.  Cloud Computing is accelerating trends.  We will see much deeper relationship driven models instead of just running on numbers.

Generation Y is very smart and connected, but have not found a way to have personal relationships since many of their interactions are online, not in person. The connectedness will allow companies to have more contractors or free agents versus employees on the payroll.

The Takeaway:

Industries can be more or less innovative depending upon their mindset, geography , technology and culture.

That is where to find innovation.  Where do you find it?  Please comment below.

1.      Do you agree or disagree with the list of the most innovative industries?

2.      Do you think Silicon Valley is the center of innovation in the US?

3.      What other industries would you add to the “ripe for innovation” or “most innovative” lists?

If you would like to contact me, you may do so by visiting my LinkedIn page, following me on Twitter,  or e-mailing me at rcberman2 (at) yahoo (dot) com.

Innovation: A Look at the Global Picture

March 8th, 2011

The vision : sense : ideas created the UAE and Dubai, the vision and inspiration to do something new, better, higher and indeed stronger was the driving force! Enjoy! :)photo © 2010 UggBoy UggGirl | more info (via: Wylio)
Innovation was United States and Western European centered for many years.  The innovation process has changed when we consider countries around the world like China, India and Brail.  Jatin DeSai, CEO of The DeSai Group shared with me his thoughts about the internationalization of innovation.

1. Is innovation different around the world?

Yes, to a certain extent. Two examples are China and India.  China has a production focus.  They want to be the world’s most innovative for manufacturing plants. India has a service focus.  They want to be the most innovative in back office, integration and processes. They are reinventing business processes and technologies to create new solutions.

2. What countries are the most innovative? Why?

The US is still the most innovative in many ways.  It is far ahead in R&D.  By definition you cannot innovate unless you are doing pure research.  The US needs to invest more in R&D to keep its advantage as other countries are spending more than ever before to try and close the gap. US Companies are also spending more by setting up R&D in other countries such as India, Israel, and Brazil. This will create interesting tension, opportunities and challenges for US in the future.

Other countries approach innovation on an industry basis.  Scandinavia and Norway, in particular, focus on solar, green and sustainability.  They are very good at building Eco systems.  That is driven by their focus on systems, design, quality, and sustainability.

Germany was an early high quality manufacturer. The machining precision and strong educational system for design has created a world-class Eco system there.

Brazil is focusing on several areas.  Green approaches are used to build the largest electric grid for vehicles as well as the most ethanol stations.  They have an advanced policy around the environment.  Their other focus is Lifestyle and Fashion.  There is lots of money flowing between Madison Avenue and Brazil.  In the next 5-10 years Brazil will also be an interesting player in the entertainment industry.

3. What industries are the least innovative? Why?

Highly regulated industries are the least innovative.  For example, Insurance, Financial Services and Pharmaceuticals.  Others like transportation, oil, energy and coal rely on old processes and technologies.

4. You work with diverse industries and multiple countries.  How easily do your concepts translate to these different constituencies?

Our work is industry agnostic.  Our framework works well across all of them.  We have identified 30 boxes that any company in any industry can innovate. Therefore, it is only the company’s “game” (mindset) along with current strategic intent that will determine which boxes to innovate now and in the future. Best innovators innovate in almost every box. As an example, in Pharma, 6-7 years is the product development cycle while a toy company must constantly innovating with a 9-12 month cycle.  Contrast those with a fertilizer company where half of the business is government subsidized.  They may not use innovation to create a new product for 10-20 years.

The Takeaway:

Innovation is truly a worldwide phenomenon.  Engage colleagues and vendors in other countries to learn how they are tackling innovation.

Those are the questions and answers.  What do you think?  Please comment below.

1.      Do you feel innovation is growing, the same or decreasing around the world?

2.      How do you engage colleagues and vendors to learn how they tackle innovation?

3.      Have you changed your innovation process based upon the changing landscape in other countries or industries?

If you would like to contact me, you may do so by visiting my LinkedIn page, following me on Twitter,  or e-mailing me at rcberman2 (at) yahoo (dot) com.

 

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