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Innovation Tools – The Course

Published date: February 14, 2011 в 3:00 am

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It’s that time of year again for “Innovation Tools,” the graduate marketing course at the University of Cincinnati.   The course teaches how to use Systematic Inventive Thinking, a method based on three ideas.  First, most successful innovations over time followed one of five patterns, and these patterns are like the DNA of products that can be re-applied to innovate any product or service.  Second, innovation happens when we start with a configuration (the “solution”) and work backwards to the “problem” that it solves.  It turns out that humans are better at this than the traditional “problem-to-solution” approach to innovating.  Finally, better innovation happens when we start within the world of the problem (the Closed World).  Innovations that use elements of the problem or surrounding environment are more novel and surprising.  We innovate “inside the box,” not outside.

Students not only learn how to innovate, but they also learn how to link it to marketing strategy.  We teach a bit of the Big Picture marketing framework so that students know how to tie innovation and strategy to create an innovation roadmap.

We have 45 graduate students, mostly from our master of science of marketing program.  It is a diverse group and includes masters and doctoral candidates from other colleges.  From this class, we created eight teams working different projects.  The mix of products, services, and government programs should demonstrate that innovation methods can be applied virtually anywhere.  Here are the projects:

Super Bowl Innovation

Published date: February 7, 2011 в 3:00 am

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At $3 million dollars for a thirty second spot, Super Bowl advertisers need to create the best, most innovative commercials possible.  How?  Creating innovative TV commercials is more effective when using patterns embedded in other innovative commercials.  Professor Jacob Goldenberg and his colleagues discovered that 89% of 200 award winning ads fall into a few simple, well-defined design structures.  Their book, “Cracking the Ad Code,” defines eight of these structures and provides a step-by-step approach to use them.

Here are the eight tools:
1. Unification
2. Activation
3. Metaphor
4. Subtraction
5. Extreme Consequence
6. Absurd Alternative
7. Inversion
8. Extreme Effort
Let’s see how well 2011 Super Bowl ads fit these patterns.

Academic Focus: University of Pavia

Published date: January 31, 2011 в 3:00 am

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The Centre for International Business and the International Economy at the University of Pavia is conducting a comprehensive study on how companies leverage innovation as a competitive weapon.  It seeks to uncover the different strategic models and managerial practices adopted by the most successful and innovative firms to achieve a competitive advantage. 

I encourage you to participate by following this linkInnovation Survey 

The survey will be followed by companies like Microsoft, Alessi, Accenture, Siemens AG, and Deutsche Bank.  The survey is a replica of a similar one conducted in Italy in 2009 that involved over 120 companies.  Results are expected mid March.

The University of Pavia, one of Italy’s oldest and best, has a strong offering in innovation.  Dr. Stefano Denicolai, Professor of Innovation Management, teaches a course on “Innovation Management.”   The aim of the course is to develop specific skills in the field of innovation process, management, and entrepreneurial activities at the global level.  The program proposes basic notions, theoretical models and case studies about topics such as: development of new product, implementation of new processes, network management, appropriability of the competitive advantage.

Course topics include:

  • Entrepreneurship, theories of the firm and role of innovation within multinational companies
  • Understanding and renewing business models of the firm
  • From Ego to Open innovation
  • Knowledge generation vs knowledge brokering at the global level
  • Network practices (partner selection, contract negotiation, appraisal of alliance performance)
  • The geographical dimension: Innovative clusters and global networks
  • Appropriability of the competitive advantage: legal vs strategic mechanisms

In case you are wondering what the word appropriability means, it is defined as: the environmental factors that govern an innovator’s ability to capture profits generated by an innovation.  

Don’t Brand Your Innovation Program

Published date: January 24, 2011 в 3:00 am

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Companies should avoid the temptation to brand their innovation program. While it seems like a great way to bring excitement and focus to innovation, branding these programs does just the opposite.  Employees become cynical, they wait it out, and they go right back to doing what they were doing before.

I liken this advice to that from Edwards Deming on quality.  His 14 Key Principles are legendary in the quality movement worldwide.  Principle Number 10 says:

“Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.”

In other words, don’t cheer people on to do something they already do or, worse, don’t know how to do.  For example, don’t place huge banners in the cafeteria or on the employee website about the importance of quality.  That’s because…they already know it!  It annoys employees when the company condescends.

The same is true with innovation.  Branding your corporate innovation with hyperbole and slogans only defeats the purpose.  But there are some who would argue the merits of branding.  It signals leadership support, and it creates enthusiasm.  GE’s “Ecomagination” for example, makes a clear statement about the company’s emphasis.

Ge eco What to do?  A recent study on the effects of time pressure on innovation outcome might lend some insight.  Michael Hsu and Hsueh-Liang Fan demonstrated that putting time pressure to innovate in a company that already has a high organizational innovation climate actually hurts performance.  In other words, cracking the whip on employees who already perform well makes them perform worse.  On the other hand, creative outcomes will be enhanced by putting time pressure in companies with a poor innovation culture.

Perhaps the same could be said for branding your innovation program:

  • In corporate cultures where the innovation climate is strong and well supported, branding the innovation does absolutely no good.  It may signal that something is wrong, or the leadership just doesn’t get it.
  • In corporate cultures where the innovation climate is weak or non-existent, branding the innovation program may give a short term burst of energy and results.  ‘Might as well try it…nothing else seems to work.

If you insist on bringing high visibility to your innovation program, don’t brand the entire program.  Rather, brand the innovation training program.  Signal to your employees that you are serious about giving them the skills that matter most – the ability to create new and useful innovations across the entire enterprise.  THAT is worth bringing attention to.

Innovation for the Non-Profit Sector

Published date: January 17, 2011 в 3:00 am

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Non-profit organizations need innovation every bit as much as for-profit firms.  Some might argue they need it more because they lack the resources and cash flow of large commercial firms.  Non-profits need innovation in:

  • Fund Raising
  • Expanding their reach
  • Mission delivery
  • Resource utilization

The need for innovation in the non-profit sector is widely recognizedAwards, grants, and other forms of recognition for innovative programs help stimulate managers to be more aggressive.

While the need is recognized, the approach to innovating non-profits is not.  These organizations should use the same methods found so effective in corporate innovation.  Structured methods based on patterns inherent in inventive solutions can be applied to the non-profit business model just as effectively as the for-profit model.  A method like S.I.T. can help an organization “break fixedness” about its role, resources, and process, thus opening new possibilities and approaches.

Here is how I would do it.  Start by making a list of the components of the non-profit, both internal to the firm as well as external.  The list might include:

  1. the office
  2. volunteers
  3. phones
  4. fund raising events
  5. website
  6. promotional material
  7. donations and grants
  8. beneficiaries
  9. benefactors
  10. mission statement
  11. management board
  12. executive director

Start with a tool like Subtraction.  Try removing an essential internal component (for example, donations and grants).  Use “Function Follows Form” to imagine benefits and uses of all the remaining components.  Try it with other components.  Next, use the Task Unification tool.  This tool helps you see existing resources in a new light, usually creating innovative ways to use those resources.  Finish the exercise with one of the three remaining tools.  Division, for example, will likely create new configurations of the non-profit and stimulate innovative ideas.  For example, try dividing out some of the executive director’s roles but placing them somewhere else back in the “Closed World.”  Where would those roles go and why would that be beneficial?

Here are some creative examples from the non-profit sector (courtesy of PSFK):

  1. Nonprofit Shopping Mall is a new service that turns consumer dollars into charitable donations. The organization partners with major online retailers like Target, Amazon, Home Depot, Bloomingdales, Expedia, Petco, and iTunes.  They donate a percentage of each purchase to the nonprofit of choice.  A shopper begins on Nonprofit Shopping Mall, choosing a charity and clicking through to a retailer. Tracking data is used to identify which shoppers came via Nonprofit Shopping Mall, and which charities they’ve chosen to donate to.
  2. Holiday Matinee recently worked with a local, non-profit charter school-offering its students an opportunity to design their own silkscreen tees, which they then voted on which designs to take part in their Artist Series. 100% of all the proceeds from these shirts go to school funding.
  3. Can Too is an Australian non-profit program that provides professional training in running and swimming in exchange for charitable fund raising. Members are given twice-weekly training sessions, daily guides, speakers and social events.  In return, they have to raise funds for Cure Cancer Australia. Runners can train for 10K or half marathon and full marathon events while swimmers can choose from among 1 km, 2 km and 2.7 km ocean swims and raise funds when they participate in their respective events. Can Too has raised more than AUD 4 million for Cure Cancer Australia.
  4. The MarkProf Foundation is a non-profit organization in Manila.  Its main event is an all-expenses paid, seven week “boot camp” led by multinational CEOs and reputable captains of local industry. Participants from diverse socio-economic backgrounds are ranked based on two core virtues: innovation and inquisitiveness.  The proof of success is in quality job creation. “MarkProf is already the biggest source of management trainees for some of the top multinational companies in the Philippines” says current president, Jem Perez who also refers to the organization as a “resume equalizer”.

The LAB: Innovating the Book with S.I.T. (January 2011)

Published date: January 10, 2011 в 3:00 am

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 Book publishing faces turbulent times.  While the market is growing, key parts of the business model are coming apart at the seams.  Market segments are fragmenting, price points are changing, channel power is shifting, and barriers to entry are lowering.  Even the definition of “a book” is in question.  Is it the medium (printed pages between two pieces of cardboard, electronic, online)?  Or is it the message (the story, the characters, the themes)?  When an industry faces turmoil, there is only one thing to do – innovate!

For this month’s LAB, lets innovate the plain old, everyday book, an idea that goes back 5000 years.  We will use the corporate innovation method, S.I.T..  It is based on five patterns.  We use the patterns to create hypothetical, abstract “solutions.” Then we work backwards from the solution to try and identify potential problems that it solves.  The term for it is called Function Follows Form.

D Book We start by listing the components:

  1. cover
  2. table of contents
  3. preface
  4. introduction
  5. chapters
  6. pages
  7. words
  8. page numbers
  9. spine
  10. appendix
  11. endorsements
  12. author
  13. title
  14. jacket
  15. bibliography

We apply one pattern at a time to a few of the components.  Applying a pattern morphs what we once new as a book into something strange and ambiguous.  The secret to being successful with the S.I.T. method is to be comfortable with the abstract concept even when it assaults your sense and sensibilities.  The templates help you automate the creation of these abstractions – you don’t need any special talents to use them.  But then you have to push through your discomfort to imagine the abstraction having benefits and potential users.

Here are five innovations for the book industry, one for each pattern.

1.  SUBTRACTIONRemove the author.  What are the benefits of a book with no author?  Perhaps it is a way to create marketing buzz as it did with Primary Colors by that famous author, Anonymous.  It is not a new idea, so let’s push further. Here is how it might work.  The author’s name is left off the book until it has sold a certain number of copies.  Once it reaches the threshold, the publisher prints a new run with the author’s name.  This would motivate authors, especially well established ones, to write great stuff.

2.  MULTIPLICATIONMake copies of the words.  To use this pattern correctly, you need to make the copy but change it in some way.  The key is to change it some way without first figuring out why it would be beneficial.  In this example, I would make copies of the words, but change color of the copied words.  Perhaps the copied words (different color) are placed at the bottom of the page.  Maybe this is for people who just want to skim the book or a chapter.  The colored words are the same as what is in the original book, but the page also has those few key words that help the reader skim through it quicker.  This is like having a “Cliffsnotes” version already within the book.  It would help publishers compete with those publishers who print summarized versions of their books.

3.  TASK UNIFICATION:  The page has an additional job of making you more efficient. Reading is hard work, but enjoyable for many, so it would be beneficial if there was a way to help readers enjoy the book more while being more efficient.  For example, what if a page in the book could tell readers when to take a break.  Or perhaps that page alerts the reader NOT to take a break because something ahead is really important.  Perhaps the page has a role in conveying the emotion of what readers feel while reading the words on that page – perhaps it is a certain color or type of paper related to the story.  Or, perhaps the page alerts you when you should go back to a certain page and re-read it to make sure you understand what is happening on that page.

4.  DIVISIONThe introduction is divided out physically and put somewhere else in the book.  This is a clever idea because we typically think of “introduction” as being at the front a book.  We all have “fixedness” about where introductions should be located.  In this example, perhaps we put the introduction in the middle of the book, after the reader has had a chance to get through some of it.  Now the person who is “introducing” the book can write it with a different tone and message.  “Hey, now that you’ve read half the book, let me tell you my thoughts.”  This would make the role of introductions much more interesting and useful.

5.  ATTRIBUTE DEPENDENCY:  To use this pattern correctly, we do not use components of a book, but rather use the attributes (characteristics) of the book.  We create correlations between attributes – when one changes, so does the other.  I created a correlation between the “type of endorsement” and the “message of the book.”  Here is how it would work.  A book is digitally scanned and analyzed for things like word count, readability, tone, and style.  Then it is compared to a database to identify other books that are similar.  The publisher offers this as a service to readers so they have better information about the book they are considering buying.  The “endorsement” is not from a person, but rather from other books that are most similar.

Academic Focus: The Live Well Collaborative

Published date: January 3, 2011 в 3:00 am

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The Live Well Collaborative at the University of Cincinnati is an academic-industry innovation incubator for regionally, nationally and internationally prominent firms.  The focus of LWC is the aging population.  Firms partner with UC to address product or service needs for the 50+ market. The UC students and faculty conduct research and develop ideas incorporating expertise from fields including design, business, engineering, medicine and anthropology.

From the Live Well website:

The Live Well Collaborative is an invaluable resource of up-to-date, ever-growing information about the 50+ market. As a member of the LWC, your organization will have access to unique research and consumer insights on the Baby Boomer population. We work with industry leaders, experts in the fields of design, engineering, marketing, nursing, and medicine, and utilize a host of young creative talent. LWC is perfecting this new model, harnessing the vast potential of interdisciplinary problem solving and innovation.
Working with the University of Cincinnati (UC), a major research university, the Live Well Collaborative taps the talent of the top-ranked College of Design, Architecture, Art and Planning, College of Business, College of Medicine and Nursing and College of Engineering, each with a long track-record of successful industry-sponsored research and studio projects.
The Live Well Collaborative presents innovation and problem-solving workshops to meet the needs of industry partners as well as interested organizations. The LWC also provides yearly collaborative events focused on the 50+ consumer.

Img-process_model LWC uses a structured innovation and design process.  The process begins with the sponsoring company identifying an opportunity to be explored. This could be a product or a service solution. Next, the interdisciplinary faculty and staff team is created. During the 10-12 week studio project, the sponsoring company provides background information and reviews progress. Based on qualitative research, consumer insights, and company feedback, the teams then design innovative products or services which can include prototypes, technology solutions, and business models.

Craig Vogel, President of LWC and Associate Dean of Research and Innovation at the College of Design Architecture Art and Planning at the University of Cincinnati said that the over-50 consumer of today wants to continue their current quality of life as they age.  “Younger consumers look for the latest technology breakthrough while 50 plus consumers look for comprehensive innovation. A new product for over-50 consumers must be technologically advanced but also easy to adopt into and support the needs of aging consumers’ diverse and active lifestyles.”

To get your company involved with the Live Well Collaborative, contact info@livewellcollaborative.org.

The LAB: Innovating Athletic Shoes with S.I.T. (December 2010)

Published date: December 27, 2010 в 3:00 am

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 The athletic footwear market is maturing, so it will need sustained innovation to keep growing.  “Performance footwear” emerged with the ancient Greeks and has since grown to a $50 billion global industry.  Innovations such as vulcanized rubber, high tops, arch support, specialized functions, endorsements, and branding have kept the industry vibrant and growing, especially for the dominant three players: Nike, Adidas, and Reebok.  Now it’s crunch time!

For this month’s LAB, we will use the corporate innovation method, S.I.T., to create new athletic shoe concepts.  The method works by taking one of the five patterns (subtraction, task unification, division, multiplication, and attribute dependency) and applying it to an existing product or service.  This morphs it into a “virtual product,” which is an abstract, ambiguous notion with no clear purpose.  We then work backwards (Function Follows Form) to find new and useful benefits or markets for the virtual product.
Here are five innovations created by graduate students at the University of Cincinnati as part of their graded requirements in the innovation tools course.
Feet Heat 1.  FEET HEAT:  Insole of the shoe heats up and keeps the feet of the athlete warm even in extreme conditions. A battery in the sole provides power to a metal plate-heater. Shoe can be connected to regular power-outlets and recharged within minutes.  (SIT TOOL: task unification – assigning an additional job to an existing resource)
2.  COLOR EX: The color of the fabric changes according to the physiological signs of the athlete (heart rate, lactic acid level).  Different colors are designated to different levels of exertion/intensity that the athlete’s body has been enduring.  Color EX Benefits: allows athletes to see whether they need to work harder or slower.  Helps athletes train within a specific performance range.  Also alerts coaches, trainers, and teammates as to how hard the athlete is really working. (SIT TOOL:  attribute dependency – one  feature of the product changes as another feature of the product or the environment changes)
3.  SMART SOLE:  The surface of the sole adjusts to the type or conditions of the ground to improve performance.  As ground conditions change (example:  hard wood floor, gravel, wet cement, rocky terrain, grass), the thickness, stickiness, and durometer of the sole adjusts to optimal configurations for that surface.  Benefit:  allows athletes in sports that cross over different surfaces to perform better.  (SIT TOOL: attribute dependency – one feature of the product changes as another feature of the product or the environment changes)

Strength pro 4.  STRENGTH PRO:  Holes in the soles allow athletes to add various sized weights to the shoe. Weights can be exchanged or completely removed.  Training device to increase stamina, speed, endurance, strength, and vertical leaps. Weight is easily removed so that the shoe can be used regularly (same shoe for practice and competition). Weights can be quickly increased or decreased based on workout purpose and individual needs.  (SIT TOOL: task unification – assigning an additional job to an existing resource)

5.  INVERTED SPIKES:  The spikes of the shoe are inverted into the bottom into the athletes foot.  The spikes are softned and dulled so as to provide a message therapy as the athlete moves.  Benefit:  improves foot circulation, endurance, and comfort.  (SIT TOOL:  multiplication – copying a component and changing it in some way such as size, location, etc)

Innovation and Humor

Published date: December 20, 2010 в 3:00 am

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A church needed a new bell ringer.  When a man with no arms applied for the job, the doubting priest asked, “Can you ring the bell?”  The applicant climbed the bell tower, took a running start, and plowed his face into the bell producing a beautiful tone.  He suddenly slipped, fell to the ground, and died.  The crowd of onlookers asked the priest, “Do you know this man?”  The priest replied, “No. But his face rings a bell.”

If you are like most people, you laugh at jokes at their very end, not the beginning.  Why?  Because jokes make sense only in hindsight after we hear the proverbial “punch line.”  We have no context to start laughing at the start of the joke.  But once we hear the final line, our mind works its way backwards to make sense of it.  We laugh.

So it is with innovation.  An abstract concept remains abstract until our mind works backwards to make sense of it.  Only then do we see the value.  Edward de Bono describes this phenomena in his new book, Think! Before It’s Too Late.  As de Bono puts it, “All creative ideas will be logical in hindsight.”

For the innovation practitioner, this ability to automate our thinking and “see value in hindsight” is a crucial skill, one that can be trained and learned by anyone.  It can be strengthened and perfected with practice.  Once we develop an inate ability to see value in hindsight, the practitioner needs to develop a way to  create the abstractions.  That is where the use of innovation patterns comes in.  Five simple patterns – subtraction, task unification, division, multiplication, and attribute dependency – guide us to create abstract concepts.  They help us innovate systematically, on demand.

What is unique about these patterns is that they have emerged from products already deemed innovative.  They do not rely on random generators.  They do not rely on special cognitive abilities of individuals.  They do not rely on unique insights gained from customers.  The patterns act like a cognitive prosthetic that creates the abstractions for you.  All you need to do then is “see the value in hindsight” just as you do with a good joke.

The church continued searching for a bell ringer.  Another man applied – the twin brother of the man who died.  The priest asked, “Can you ring the bell?”  The applicant climbed the bell tower as his brother had done and ran straight at the bell.  He suddenly slipped, fell to the ground and died, almost in the same spot.  Stunned onlookers asked the priest, “Do you know THIS man?” 
“No, but he’s a dead ringer for his brother.”

 

Drew Boyd on Innovation Management

Published date: December 13, 2010 в 3:00 am

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Innovation Management is an online magazine offering best practice and inspiration to innovation management practitioners. It sources and provides articles in collaboration with experts in the field of innovation management from leading business schools, companies and universities worldwide. The online magazine seeks to be the best source of best practice for innovation management practitioners.

Here is the text of my recent interview with co-founder and chief editor, Karin Wall.

What is innovation management to you?

Innovation management is three things: 1. Creating innovation competencies, 2. Allocating resources to innovation projects, and 3. Managing an innovation pipeline from idea to market launch.  I believe many people focus too much on the last two and not enough on creating the skills and talent needed for innovation.  Leadership teams must take the responsibility for  training and development, recruitment, and reward systems that elevate the innovation competency of the firm.

What’s the most satisfying part in your job?

I enjoy seeing people’s reaction to learning innovation.  I love it when they create their first idea using a structured process.  They get a big grin on their face.  It is very gratifying when my students “get it” and see how this ability to innovate will make them an enormous resource to any company that hires them.

And the most frustrating parts?

When people learn the skills of innovation, they face their next big challenge – how do I convince my boss to use this method on a regular basis?  How do I persuade the organization to see innovation as a systematic process?  It is frustrating to see students frustrated.  So we train additional skills of influence and organizational alignment.  We try to create “innovation evangelists.”

What’s your next big challenge

My next big challenge is getting the word out on what works and what doesn’t work in innovation.  I taught innovation to a group representing five multinational companies recently.  They were convinced that the method (based on patterns) works and can be used in a variety of ways.  But one of the participants asked, “Why am just hearing about this now?”  That is a good question, and more needs to be done to make people see innovation as a set of skills that can be taught and learned by anyone.

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