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The LAB: Innovating Retail Selling with Task Unification (September 2010)

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

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Task Unification is a great tool when you have a general idea of the direction you want to go or business challenge you are dealing with.  It is one of five templates in the Systematic Inventive Thinking method.  Like all the templates, it helps regulate and channel the ideation process while creating unique and useful innovation possibilities.  It works by taking a component list of the product, process, or service, and then assigning an additional “job” to that component.  It helps break “fixedness” in how we see components and their traditional role, thus opening up potential growth opportunities.
For this month’s LAB, we will use this template to innovate new ways of in-store retailing.

Retailers already do a lot of creative things to improve sales.  There are the traditional tactics like putting the milk and eggs in the back of the store.  But newer approaches are emerging as retailers learn from their online experience
and migrate these ideas to in-store selling practices.  Search optimization, for example, applies to a brick and mortar store every bit as much as the online store.  Let’s imagine ourselves in the retail sales business such as a grocery story or department store.  Further imagine we are planning for an upcoming seasonal selling opportunity such as Halloween.  According to the National Retail Federation, the value of all retail sales in the seasonal Halloween category (pumpkins, candy, costumes, decorations) is about $5 billion in the U.S..  While impressive, stores need to constantly think of ways to innovate and grow the top line sales and bottom line profits.

 Let’s use Task Unification to create some retail selling innovations.   Here is our component list for a retail store (such as Target, a large U.S. chain):

  1. shopping carts
  2. cash registers
  3. scanners
  4. shopping bags
  5. aisles
  6. shelves
  7. customer service
  8. sales staff
  9. products
  10. customers
  11. store lighting
  12. departments

The challenge that we want to address is: 

“How do we increase sales in the Halloween category?”

To use Task Unification, we take a component from the list above and give it this “job.”  For example:  “The aisles have the job of increasing sales of Halloween products.”  Now we work backwards to imagine the benefits of this, how it would work, what problems and issues does it present.  In other words, we innovate a new way for the aisles of a department store to create stronger sales.  The trick is to use each component productively, not just to be different.  For example, if we suggested that the lighting in the store would now be orange in color to promote a Halloween theme, this would not pass the test.  The lighting in the store actually has to “sell” something or otherwise drive some positive business result.

Even better is when you can fold in the advertising concept called “fusion.”  This is when we take a specific message such as a brand theme and incorporate it into the new “job” to be taken on by the component.  We fuse the component, its new job, and the message.  For example, let’s consider the brand theme of Target:  smart consumers seeking value and design…”cheap chic.”  Now the store lighting not only illuminates the store, but also has to do it in a way that conveys or reinforces this brand message.

Prospective Innovation

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

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People can improve the quality, originality, and elegance of ideas by extensively forecasting the implication of those ideas during the generation phase.  Researchers from The University of Oklahoma studied the effect of forecasting on idea evaluation and implementation planning.  In the experiment, 141 undergraduate students were asked to formulate advertising campaigns for a new product.  These campaigns were evaluated by a panel of judges.  Prior to formulating the campaigns, participants were asked to forecast the implication of their ideas and the forecast the effects of a plan for implementing their best idea.

As part of the experiment, students received a hypothetical email from the “vice president of sales” for this new product.  They received this during the idea generation phase of the project.  In the email, he directed the students as follows:

“I hope all is going well on the IMPACT project.  The deadline is nearing for the release of the ‘IBC IMPACT’, and I am curious to see what you have come up with for the new advertising campaign.  Please send me a preview of your ideas and strategies.”
“To be more specific, I want to know why your chosen campaign strategies will resolve the issues that I outlined in my first email (e.g. target desired demographic, lasting impact with demographic, retain vintage look, etc.).  I am mostly interested in your predicted results if these plans are actually set into motion.  I am fully aware that there may be downsides and potential problems with any strategy used, so include these (if any) in your descriptions.  Tell me how you think your current plan will play out down the road.  Visualize this advertising campaign unfolding into action and describe that scene to me.  I would like to know the consequences of any action that we might take, and other factors that could potentially influence the campaign.”

Students who mentally imagined the “down the road” effect of their ideas most extensively produced the best ideas.

For innovation practitioners, educators, and consultants, the implications are clear.  The use of mental simulation can improve innovation effectiveness.  Mental simulation should be used to cognitively “walk through” the steps of the idea generation process.  It should also be used to cognitively predict the implications of those ideas.  Given that some people are better than others at extensive forecasting, innovation facilitators need to have scripted directions for the work group on how to extend their thought processes about future events as a way to boost originality in ideating.

Byrne, C. L., Shipman, A. S., & Mumford, M. D. (2010). The effects of forecasting in creative problem-solving: An experimental study. Creativity Research Journal, 22, 119-138.

Academic Focus: Aalto University

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

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The convergence of three worlds…commercial, technical, and design…creates the optimal conditions for innovation.  Now a new university in Finland has done just that.  Aalto University is a newly created university from the merger of the Helsinki School of Economics, the University of Art and Design Helsinki and Helsinki University of Technology – all leading and renowned institutions in their respective fields and in their own right.
From the Alto website:

The Voice of the Product

Published date: September 6, 2010 в 8:55 am

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Could the greatest innovation of all time be a method of innovation?  Roger Smith proposed this in The Evolution of Innovation.  Is such a method out there?  The answer is yes.

Suppose you want to come up with a new product idea. Where do you begin?  What method would you use?  Conventional thinking suggests three possible directions.  First, we could seek insights from our customers through research and observation (Voice of the Customer).  Second, we could emulate what inventors like Edison and Disney did to create new ideas (Voice of the Expert).  Or we could seek ideas from competitors and other sources using the “open” mindset (Voice of the Market).

There is a fourth source – The Voice of the Product1.  Jacob Goldenberg and his colleagues discovered the surprising insight that innovative products tend to follow certain patterns.  It is similar to the notion of TRIZ which is a set of patterns for solving problems.  Innovative products share common patterns because their inventors unknowingly follow patterns when generating new product ideas.  These patterns become the DNA of ideas2.  If you can extract the DNA and implant it into other products and services, you can innovate.

A majority of new and inventive products can be categorized according to only five patterns:

  • Subtraction: Taking an essential component away
  • Task Unification:  Assigning an additional job to an existing product
  • Multiplication:  Making a copy of a component but changing it in some way
  • Division: Functionally or physically dividing a component or product
  • Attribute Dependency: Creating new (or breaking existing) dependencies between attributes of a product or service and its environment

A systematic process called S.I.T. has been developed to apply these patterns. The patterns become “thinking tools” to identify new ideas. This process is called function follows form (FFF), a term coined by cognitive psychologist Ronald Finke. Instead of
innovating by identifying a “function” or need and then creating a product, one first manipulates the existing product and considers how the new form could be beneficial.

Yoni Stern and Amnon Levav describe it as follows:

“Using FFF, one develops products in the reverse order to the market research process. One begins with an existing concept or product — a list of the product’s physical components and its environment. Then one of the five thinking tools is used to theoretically manipulate the product. These new “virtual products” are immediately assessed as to their value and feasibility. If the virtual product has market potential and falls within existing company and technological constraints, it undergoes needed minor adaptations and is considered worthy of follow-up. Market knowledge is used as a filter rather than the starting point; ideas generated are likely to be different from those of competitors.”

People find it difficult to believe that innovation is a skill, not a gift.  With a method like S.I.T., anyone can learn to innovate anything, anytime.  If a better method evolves, I hope to be among the first to hear about it.

1. Goldenberg, Jacob and David Mazursky. “The Voice of the Product: Templates of New Product Emgergence”. Creativity and Innovation Management September 1999: 157-164.

2.  Stern, Yoni, and Amnon Levav. “The DNA of Ideas”. BIO-IT WORLD April 2005: 56-57.

The LAB: Innovating Website Design with Attribute Dependency (August 2010)

Published date: August 30, 2010 в 3:00 am

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Imagine a website that changes depending on the visitor.  Researchers at M.I.T. describe such a website that learns a person’s thinking style based on preliminary clicks so it can present information in an optimal way.  Purchase intentions increased 20%!

This is an example of the Attribute Dependency tool of the corporate innovation method, S.I.T..   It’s great for creating “smart” products and services –
those that adapt to user preferences or environmental
conditions.  For this month’s LAB, let’s apply Attribute Dependency to other aspects of websites to create new, innovative designs or features.

To use Attribute Dependency, make two lists.  The first is a list of internal attributes of a website.  The second is a list of external attributes – those factors that are not under your control, but that vary in the context of how the product or service is used.  Then create a matrix with the internal and external attributes on one axis, and the internal attributes only on the other axis.  The matrix creates combinations of internal-to-internal and internal-to-external attributes that we will use to innovate.  We take these virtual combinations and envision them in two ways.  If no dependency exists between the attributes, we create one.  If a dependency exists, we break it.  Using Function Follows Form, we envision what the benefit or potential value might be from the new (or broken) dependency between the two attributes.

Here are the variables that I put into the matrix (which you can download here).

2010 Outstanding Corporate Innovator

Published date: August 23, 2010 в 3:00 am

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Congratulations to Kennametal, Inc. as the winner of the 2010 Outstanding Corporate Innovator (OCI) award. The Product Development and Management Association (PDMA), a global network of product innovation professionals, announced Kennametal  will receive the OCI Award at PDMA’s 34th Annual Global Conference on Product Innovation Management, October 16 – 20, 2010 at Rosen Shingle Creek in Orlando, Florida.

From the press release:

“Kennametal has demonstrated an impressive corporate commitment to innovation which has resulted in a successful track record of significant new product launches in the past five years,” said Sally Evans Kay, chair of PDMA’s OCI award selection committee. During recent turbulent economic times Kennametal has used its commitment to innovation to provide unique customer solutions and to gain a competitive advantage.

Simulating Innovation

Published date: August 16, 2010 в 3:00 am

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People can improve their innovation skills by mentally simulating the use of innovation tools.  Chip and Dan Heath in their book, Made to Stick, talk of the importance of mental simulation with problem solving as well as skill-building.

“A review of thirty five studies featuring 3,214 participants showed that mental practice alone – sitting quietly, without moving, and picturing yourself performing a task successfully from start to finish – improves performance significantly.  The result were borne out over a large number of tasks.  Overall, mental practice alone produced about two thirds of the benefits of actual physical practice.”

Mental simulation is the imitative mental representation of some event or series of events.  It is our brain conjuring up scenarios and imagining how they will play out.  We do it all the time.  We mentally simulate driving to the grocery store, talking with our boss, or getting a back rub.  It prepares and sharpens us for things that lie ahead.  Mental simulation can also be used to practice activities that you do or want to learn.

Here is how I use mental simulation to strengthen my innovation skills with the S.I.T. method:

Green Field Innovation

Published date: August 9, 2010 в 3:00 am

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How should firms identify innovation opportunities and predict market potential at very early stages and in new areas (“green fields”) and ambiguous environments?  Here are three approaches:

1.  Find Innovation Adjacencies:

Adjacent markets are an attractive way to grow.  Adjacent markets are not too far away from your core business in terms of channels, technology, price point, brand, etc..  To find them, I recommend The Big Picture framework developed by Professor Christie Nordhielm at The University of Michigan.  The Big Picture outlines four quadrants that completely define any market category. To find “green fields”, consider each quadrant one at a time and imagine extending beyond the bounds of the category in some close by, adjacent way.  The key is to stretch, not leap beyond your inherent business model.  Ask yourself these questions:

  • Quadrant 1 Adjacencies:  What substitute products are non-category consumers using to fulfill the need.  Where are they buying it?  What complementary products go along with these substitutes?
  • Quadrant 2 Adjacencies:  What other products do your loyal customers buy, perhaps at the same price point or to fulfill the same or similar brand promise?
  • Quadrant 3 Adjacencies:  Why do multi-brand customers use several brands?  Is it time-dependent?  Situation-dependent?  Why does it vary?  What other products are used when the competitive brands are consumed?
  • Quadrant 4 Adjacencies:  What other category of products does your competitor sell?  How do those fit into their product line?  How could they fit into yours?

Once you identify potential adjacencies, apply an innovation method to create new-to-the-world concepts.

Value_net model 2.  Cooperate with the Competition:

Co-opetition is an idea described by Barry Nalebuff  and Adam Brandenburger in their book, “Co-opetition.”  It means cooperative competition – when industry participants behave in a way that benefits all.  They coopetate rather than compete.  The trick is to apply innovation templates to the Value Net model of co-opetition.  Here’s how.  List the activities of each Value Net participant (Company, Supplier, Customer, Complementors, Competitor).  Rotate each specific company in the Value Net model so that each takes a new role (competitors become suppliers, suppliers become complementors, etc).  Use each template on the new list of activities, starting with Task Unification.  Using Function Follows Form, envision how the new role creates a “green field” market.

3.  Listen to the “Voices”:

Here are three less obvious sources of “green field” opportunity.

  • Voice of the Product:  Products have enormous amounts of information coded into them through years of design improvement.  A corporate innovation method such as S.I.T. lets you “interrogate” the product to find new, undiscovered market benefits.
  • Voice of the Brand:  Brands also have information coded into them.  The key is to extract the information and data that contributes to the brand promise to see hidden assets and market potential.  For this I recommend the semantic search engine, Goldfire.
  • Voice of Serendipity:  Many products are invented accidentally.  Serendipity led to the microwave oven, corn flakes, Teflon®, penicillin, fireworks, Viagra®, chocolate chip cookies, and the most famous of all accidents…the Post-it® note.  While serendipity is unpredictable, there is value if you can unlock its hidden secrets.

The LAB: Innovating a Service Delivery Model with S.I.T. (July 2010)

Published date: July 31, 2010 в 9:29 am

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A common question about structured innovation is can it be used on services.  The answer is yes.  A service is the same as a product in many ways, and the approach to using an innovation method like S.I.T. is the same.  Let’s consider a service example for this month’s LAB.  Imagine your company was a leading uniform and apparel rental service.  You own a fleet of trucks and drivers as well as uniform design and fitting services.  Your company delivers custom fitted uniforms to the client’s location, picks up worn uniforms for cleaning, inspection, and repair, and returns them on schedule.  In this highly competitive industry, the key to survival is to exceed customer expectations.  The key to growth, on the other hand, is innovation.  Let’s use the Subtraction tool on this service to create new opportunities.
We start by listing the internal components of the service line:
  1. uniforms (inventory)
  2. fitting service
  3. design service
  4. fabric
  5. trucks
  6. drivers
  7. billing
  8. pick-up
  9. delivery
  10. cleaning
  11. inspection
  12. repair
  13. tracking
  14. contract
  15. sales representative

We remove a component but keep all the others intact.  Working backwards from this hypothetical solution, we consider what benefits it delivers or potential problems it solves.  We try to consider possible benefits of the “virtual service” as is, without replacing the component with something else.  Here are some examples:

Marketing Innovation: The Extreme Effort Tool

Published date: July 26, 2010 в 3:00 am

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How do you create the most innovative TV commercials in the world?  By 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 latest 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
Consider this example from Dairy Queen:

This commercial was created with the Extreme Effort tool.  It works by conveying the attractiveness of the product or service by showing the extreme effort one must go through to use it.  There are two versions: 1. what the customer must do to use the product, and 2. what the company must do to provide the product.  As with all eight tools, Extreme Effort yields commercials that are highly innovative and memorable.  This tool is particularly useful when your brand is well established and the category is well understood.  It is an easy way to promote your product or service in a general sense when there is nothing more specific to say.
Try this exercise.  Imagine you want to promote your blog site to attract new readers.  You want to use the Extreme Effort tool.  First, visualize three ways to show how current readers go to extreme efforts to read your blog.  You have to portray it in a way that is absurd and so exaggerated that the viewer knows you are being funny.  You don’t want them thinking they really have to go to this effort to read it.  Otherwise you will scare them off.
Now visualize three ways to show potential readers the extreme effort you go to write and produce your blog, again with the intent of being somewhat silly and exaggerated to make this point in a memorable way: “I want you to read my blog so badly that I go to this <exaggerated> effort to bring  it to you each week.
To be most effective, select the simplest one to understand.  For example, in the Dairy Queen ad, we see the mother on the hood of the car reaching out the Dairy Queen truck.  We instantly “get it.”  There is nothing more that needs to be said or explained.
Also, look for ways to create fusion between the exaggerated effort and the brand promise.  In the Dairy Queen example, the mom and dad are participating in the age-old kids game that their children were playing.  Dairy Queen is about having fun.  The ad fuses that idea with the parents acting like children and having fun thanks to Dairy Queen.  Clever.

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