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Innovation, the future
  and why nothing is
     ever simple
Innovation, the future
  and why nothing is
     ever simple
Commoditisation &
   Innovation
Commoditisation &
   Innovation

     Drivers
Commoditisation &
    Innovation

       Drivers
Why nothing is simple
Commoditisation &
    Innovation

       Drivers
Why nothing is simple
       Future
Environment
              Open Source    People
    Genetics     Commoditisation
Patents
   Politics   Ducks                   Chaos
                                          Football

                                      Maths


Participation Printing
    Information Tech.
                    Electronics
                                  Freedom
Environment
              Open Source    People
    Genetics     Commoditisation
Patents
   Politics   Ducks                   Chaos
                                          Football

                                      Maths


Participation Printing
    Information Tech.
                    Electronics
                                  Freedom
DANGER!
Will Robinson
 DANGER!
dX = F(y)^F(z) + c




p = Sin(y3).Cos(z)2 + k
Severe
Pain




            risk of
             harm

       OK
                  No. Slides
60 slides


               Severe
Pain




               risk of
                harm

       OK
                     No. Slides
Pain
            185 slides




       OK
http://bancomicsans.com/home.html
End of
DANGER!
End of
DANGER!
Commoditisation &
   Innovation
change from monopolistic
 to perfect competition
Yesterday’s    Today’s
 hot stuff    boredom
New
New   Bespoke
New   Bespoke   Products
New   Bespoke   Products   Services
1832


New
1832


New    Bespoke
1837




New   Products
Electricity is a powerful
   constitutional tonic

 American Electrotherapeutic Association
1890’s




      Utility
New
       Grid
1930’s




      National
New
       Grid
COMMODITISATION




   New   Bespoke   Products   Services
Power


Internet


 CPU.
Power


Google   Internet


          CPU.
The fundamental impulse that
                       sets and keeps the capitalist
                       engine in motion comes from
                       the new consumers, goods,
                       the new methods of
                       production or transportation,
                       the new markets, the new
                       forms of industrial
                       organization that capitalist
                       enterprise creates.

Joseph A. Schumpeter
    (1883 - 1950)
The fundamental impulse that
                       sets and keeps the capitalist
                       engine in motion comes from
                       the new consumers, goods,
                       the new methods of
                       production or transportation,
                       the new markets, the new
                       forms of industrial
                       organization that capitalist
                       enterprise creates.

Joseph A. Schumpeter
    (1883 - 1950)
Creative
                       Destruction


Joseph A. Schumpeter
    (1883 - 1950)
New   Bespoke   Products   Services
New
Innovation
?   Innovation
Innovation is the
                          first attempt to
                          carry out [an idea]
                          into practice.



Professor Jan Fagerberg
Invention



            Idea   Innovation



Discovery
Invention



            Idea   Innovation



Discovery
Invention



            Idea   Innovation



Discovery
Invention



            Idea   Innovation



Discovery
Invention


            Idea   Innovation   Services



Discovery
COMMODITISATION




 Innovation   Bespoke   Products   Services
Invention


            Idea   Innovation   Services



Discovery
Power


Google   Internet


          CPU.
Creative
                       Destruction


Joseph A. Schumpeter
    (1883 - 1950)
Commoditisation &
   Innovation

     Drivers
New   Bespoke




Competitive
 Advantage
PRESSURE


   New
 New Thing   Bespoke
New   Bespoke   Products




Competitive
 Advantage
Screenshots taken from web at http://www.strassmann.com/
As IT becomes
             ubiquitous ... it
            has no strategic
                  value

Nick Carr
PRESSURE


  New   Bespoke   Products   Services
User Generated Content
       open source       Innovation    Analytics
                                             Utility
     AJAX      Wikis          Cloud        computing
  Rich user
  Interface
                SAAS            SEO       Social Networks

Aggregation            Opportunity            Mash Ups
      REST WebOS                        Social Media
Useability                                    Participation
    Open       Collaboration                  Architecture

        Standards    RSS    Web Services
              Adaptability       SOA
User Generated Content
       open source       Innovation    Analytics
                                             Utility
     AJAX      Wikis          Cloud        computing
  Rich user
  Interface
                SAAS            SEO       Social Networks

Aggregation            Opportunity            Mash Ups
      REST WebOS                        Social Media
Useability                                    Participation
    Open       Collaboration                  Architecture

        Standards    RSS    Web Services
              Adaptability       SOA
New   Bespoke   Products   Services
Theory of
                   Hiearchy


Herbert A. Simon
   1916-2001
CPU   Memory   I/O
Database   Framework


       Operating System


CPU         Memory        I/O
CRM         Mapping       C02 data


      Database   Framework


       Operating System


CPU         Memory         I/O
New   Bespoke   Products   Services
Services


Innovation   Services


             Services
COMMODITISATION




 Innovation   Bespoke   Products   Services
Invention


            Idea   Innovation   Services



Discovery
Power


Google   Internet


          CPU.
Creative
                       Destruction


Joseph A. Schumpeter
    (1883 - 1950)
Theory of
                   Hiearchy


Herbert A. Simon
   1916-2001
Components

Invention


            Idea   Innovation   Services



Discovery
Commoditisation &
    Innovation

       Drivers
Why nothing is simple
Common                                                          e
                                                               r vic
                                                          Se




                                                 io   n
                                              at
                                        n   ov
                                     In


     t ion                       a
   en                         de
Inv                          I
    Novel




             Low                                          High
                        e   ry
                      ov
               D   isc
Ubiquity
Ubiquity
Novel
Novel              Common




        Ubiquity
Novel         Common




  Certainty
Common




               Certainty
Novel




         Low
Common




               Certainty
Novel




         Low               High
Ubiquity
                   Novel              Common




            Low
Certainty
            High
Ubiquity
                   Novel              Common




            Low
Certainty
            High
Novel   Common




Low
High
Common




           Early 80s
         innovation of
             CRM
Novel




         Low             High
Common




               Mid 80s
               database marketing.
Novel




         Low                    High
Common




                 Early 90s
               CRM products
Novel




         Low                  High
Common


               Early 00s
               Utility-like
                  CRM
Novel




         Low                  High
Common




           Early 80s
         innovation of
             CRM
Novel




         Low             High
Common




         Innovation
Novel




         Low          High
Common


               Early 00s
               Utility-like
                  CRM
Novel




         Low                  High
Common




               Commodity
Novel




         Low               High
Common




                      Commodity




         Innovation
Novel




         Low                      High
Common




                      Commodity




         Innovation
Novel




         Low                      High
Common




         Innovation
Novel




         Low          High
http://petjunction.blogspot.com/2007/07/adorables.html
I’m in ur Internets




           http://petjunction.blogspot.com/2007/07/adorables.html
I’m in ur Internets




... web fohwr zero!!
           http://petjunction.blogspot.com/2007/07/adorables.html
Common



                    Scarcity of information




          Web 4.0
Novel




         Low                     High
Common



                    Scarcity of information
                    Expensive




          Web 4.0
Novel




         Low                     High
Common



                    Scarcity of information
                    Expensive
                    Deviation is good


          Web 4.0
Novel




         Low                      High
Common



                    Scarcity of information
                    Expensive
                    Deviation is good
                    Dynamic methods
          Web 4.0
Novel




         Low                      High
Common




               Commodity
Novel




         Low               High
Common




               Phone
Novel




         Low           High
Common
         Wealth of
         information
                       Phone
Novel




         Low                   High
Common
         Wealth of
         information
         Lower cost    Phone
Novel




         Low                   High
Common
         Wealth of
         information
         Lower cost         Phone

         Deviation is bad
Novel




         Low                        High
Common
         Wealth of
         information
         Lower cost         Phone

         Deviation is bad

         Defined methods
Novel




         Low                        High
Common



                       Scarcity of information
                       Expensive
                       Deviation is good
                       Dynamic methods
               Phone
Novel




         Low                         High
Common




                      Commodity




         Innovation
Novel




         Low                      High
Common




                       Phone




               Phone
Novel




         Low                   High
Common
                                         Set budgets
                             Recruit staff
               Maintain office facilities
                                                   Manage payroll

                                           Capture customer
                  Maintain search          request for service
                  rank listing
                                     Audit site useability
               Maintain
               corporate wiki

                                 Capture product predictions
Novel




                                 from information market


         Low                                                     High
Novel   Common




Low
High
Common




               Six Sigma
Novel




         Low               High
Common




               Commodity


                 Six Sigma
Novel




         Low                 High
Common




                      Six Sigma


         Innovation
Novel




         Low                      High
Common




                 Different
               Methodologies
Novel




         Low                   High
Common



                      Defined
                     (Prince 2)




           Dynamic
             (XP)
Novel




         Low                      High
Common




         Phone (You)
Novel




         Low           High
Common
           Phone (Everyone Else)




         Phone (You)
Novel




         Low                       High
Common
           Phone (Everyone Else)




                            Competitive
                               Gap
         Phone (You)
Novel




         Low                              High
PRESSURE


  New      Services
Novel   Common




Low
High
Common




                     Everyone Else
               You
Novel




         Low                         High
Common




          Everyone Else




               You
Novel




         Low              High
Common
                Everyone Else




                                Competitive
                                   Gap
               You
Novel




         Low                                  High
Red Queen
                               Hypothesis


Professor Leigh M. Van Valen
Creative
                       Destruction


Joseph A. Schumpeter
    (1883 - 1950)
Innovate to
survive tomorrow.
Innovate to
survive tomorrow.


     Adapt to
 survive today.
Novel   Common




Low
High
Innovation Paradox
   Survival today [adaption] requires
‘coherence, coordination and stability’.

Innovation [survival tomorrow] requires
  the replacement of these virtues.


                     Salaman & Storey
Common
Novel




               Well defined
         Low                 High
Common




Common place
    Novel




                   Well defined
             Low                 High
As ... becomes
             ubiquitous ... it
            has no strategic
                   value

Nick Carr
Common




New
               Low   High
Common




New
               Low               High
                     Uncertain
1
Future Value   ∝   Certainty
Invention


            Idea   Innovation   Services



Discovery
Components

Invention


            Idea   Innovation   Services



Discovery
Common                                                          e
                                                               r vic
                                                          Se




                                                 io   n
                                              at
                                        n   ov
                                     In


     t ion                       a
   en                         de
Inv                          I
    Novel




             Low                                          High
                        e   ry
                      ov
               D   isc
Common




                      Commodity




         Innovation
Novel




         Low                      High
Common
                                         Set budgets
                             Recruit staff
               Maintain office facilities
                                                   Manage payroll

                                           Capture customer
                  Maintain search          request for service
                  rank listing
                                     Audit site useability
               Maintain
               corporate wiki

                                 Capture product predictions
Novel




                                 from information market


         Low                                                     High
Common




                 Different
               Methodologies
Novel




         Low                   High
Common
                Everyone Else




                                Competitive
                                   Gap
               You
Novel




         Low                                  High
Innovate to
survive tomorrow.


     Adapt to
 survive today.
1
Future Value   ∝   Certainty
Commoditisation
      Innovation
       Drivers
Why nothing is simple
       Future
Products   Services
Components

Invention


            Idea   Innovation   Services



Discovery
Novel   Common




Low
High
Common




               Six Sigma
Novel




         Low               High
Common




           Agile
Novel




         Low       High
Common




               Commodity
Novel




         Low               High
Common




                       Commodity


           20%
          Innovation
Novel




         Low                       High
billege     practicalowl greencracker




kevinsteele   privatenobby   vickispix
giddygoose
              jm999uk   mscolly


        Chicago
       Historical
        Society
swardley@mac.com

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Innovation, commoditisation and why nothing is ever simple

  • 1. Innovation, the future and why nothing is ever simple
  • 2. Innovation, the future and why nothing is ever simple
  • 3. Commoditisation & Innovation
  • 4. Commoditisation & Innovation Drivers
  • 5. Commoditisation & Innovation Drivers Why nothing is simple
  • 6. Commoditisation & Innovation Drivers Why nothing is simple Future
  • 7. Environment Open Source People Genetics Commoditisation Patents Politics Ducks Chaos Football Maths Participation Printing Information Tech. Electronics Freedom
  • 8. Environment Open Source People Genetics Commoditisation Patents Politics Ducks Chaos Football Maths Participation Printing Information Tech. Electronics Freedom
  • 9.
  • 10.
  • 11.
  • 13.
  • 14. dX = F(y)^F(z) + c p = Sin(y3).Cos(z)2 + k
  • 15. Severe Pain risk of harm OK No. Slides
  • 16. 60 slides Severe Pain risk of harm OK No. Slides
  • 17. Pain 185 slides OK
  • 18.
  • 20.
  • 23. Commoditisation & Innovation
  • 24. change from monopolistic to perfect competition
  • 25. Yesterday’s Today’s hot stuff boredom
  • 26.
  • 27.
  • 28. New
  • 29. New Bespoke
  • 30. New Bespoke Products
  • 31. New Bespoke Products Services
  • 33. 1832 New Bespoke
  • 34. 1837 New Products
  • 35.
  • 36.
  • 37.
  • 38. Electricity is a powerful constitutional tonic American Electrotherapeutic Association
  • 39. 1890’s Utility New Grid
  • 40. 1930’s National New Grid
  • 41. COMMODITISATION New Bespoke Products Services
  • 43. Power Google Internet CPU.
  • 44. The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates. Joseph A. Schumpeter (1883 - 1950)
  • 45. The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates. Joseph A. Schumpeter (1883 - 1950)
  • 46. Creative Destruction Joseph A. Schumpeter (1883 - 1950)
  • 47. New Bespoke Products Services
  • 48. New
  • 50. ? Innovation
  • 51. Innovation is the first attempt to carry out [an idea] into practice. Professor Jan Fagerberg
  • 52. Invention Idea Innovation Discovery
  • 53. Invention Idea Innovation Discovery
  • 54. Invention Idea Innovation Discovery
  • 55. Invention Idea Innovation Discovery
  • 56. Invention Idea Innovation Services Discovery
  • 57.
  • 58. COMMODITISATION Innovation Bespoke Products Services
  • 59. Invention Idea Innovation Services Discovery
  • 60. Power Google Internet CPU.
  • 61. Creative Destruction Joseph A. Schumpeter (1883 - 1950)
  • 62. Commoditisation & Innovation Drivers
  • 63.
  • 64. New Bespoke Competitive Advantage
  • 65.
  • 66.
  • 67.
  • 68. PRESSURE New New Thing Bespoke
  • 69. New Bespoke Products Competitive Advantage
  • 70. Screenshots taken from web at http://www.strassmann.com/
  • 71.
  • 72.
  • 73.
  • 74. As IT becomes ubiquitous ... it has no strategic value Nick Carr
  • 75. PRESSURE New Bespoke Products Services
  • 76. User Generated Content open source Innovation Analytics Utility AJAX Wikis Cloud computing Rich user Interface SAAS SEO Social Networks Aggregation Opportunity Mash Ups REST WebOS Social Media Useability Participation Open Collaboration Architecture Standards RSS Web Services Adaptability SOA
  • 77. User Generated Content open source Innovation Analytics Utility AJAX Wikis Cloud computing Rich user Interface SAAS SEO Social Networks Aggregation Opportunity Mash Ups REST WebOS Social Media Useability Participation Open Collaboration Architecture Standards RSS Web Services Adaptability SOA
  • 78. New Bespoke Products Services
  • 79. Theory of Hiearchy Herbert A. Simon 1916-2001
  • 80. CPU Memory I/O
  • 81. Database Framework Operating System CPU Memory I/O
  • 82. CRM Mapping C02 data Database Framework Operating System CPU Memory I/O
  • 83. New Bespoke Products Services
  • 84. Services Innovation Services Services
  • 85.
  • 86. COMMODITISATION Innovation Bespoke Products Services
  • 87. Invention Idea Innovation Services Discovery
  • 88. Power Google Internet CPU.
  • 89. Creative Destruction Joseph A. Schumpeter (1883 - 1950)
  • 90. Theory of Hiearchy Herbert A. Simon 1916-2001
  • 91. Components Invention Idea Innovation Services Discovery
  • 92. Commoditisation & Innovation Drivers Why nothing is simple
  • 93. Common e r vic Se io n at n ov In t ion a en de Inv I Novel Low High e ry ov D isc
  • 94.
  • 97. Novel Common Ubiquity
  • 98. Novel Common Certainty
  • 99. Common Certainty Novel Low
  • 100. Common Certainty Novel Low High
  • 101. Ubiquity Novel Common Low Certainty High
  • 102. Ubiquity Novel Common Low Certainty High
  • 103. Novel Common Low High
  • 104. Common Early 80s innovation of CRM Novel Low High
  • 105. Common Mid 80s database marketing. Novel Low High
  • 106. Common Early 90s CRM products Novel Low High
  • 107. Common Early 00s Utility-like CRM Novel Low High
  • 108. Common Early 80s innovation of CRM Novel Low High
  • 109. Common Innovation Novel Low High
  • 110. Common Early 00s Utility-like CRM Novel Low High
  • 111. Common Commodity Novel Low High
  • 112. Common Commodity Innovation Novel Low High
  • 113.
  • 114.
  • 115. Common Commodity Innovation Novel Low High
  • 116. Common Innovation Novel Low High
  • 118. I’m in ur Internets http://petjunction.blogspot.com/2007/07/adorables.html
  • 119. I’m in ur Internets ... web fohwr zero!! http://petjunction.blogspot.com/2007/07/adorables.html
  • 120. Common Scarcity of information Web 4.0 Novel Low High
  • 121. Common Scarcity of information Expensive Web 4.0 Novel Low High
  • 122.
  • 123. Common Scarcity of information Expensive Deviation is good Web 4.0 Novel Low High
  • 124. Common Scarcity of information Expensive Deviation is good Dynamic methods Web 4.0 Novel Low High
  • 125. Common Commodity Novel Low High
  • 126. Common Phone Novel Low High
  • 127. Common Wealth of information Phone Novel Low High
  • 128. Common Wealth of information Lower cost Phone Novel Low High
  • 129. Common Wealth of information Lower cost Phone Deviation is bad Novel Low High
  • 130. Common Wealth of information Lower cost Phone Deviation is bad Defined methods Novel Low High
  • 131. Common Scarcity of information Expensive Deviation is good Dynamic methods Phone Novel Low High
  • 132. Common Commodity Innovation Novel Low High
  • 133. Common Phone Phone Novel Low High
  • 134. Common Set budgets Recruit staff Maintain office facilities Manage payroll Capture customer Maintain search request for service rank listing Audit site useability Maintain corporate wiki Capture product predictions Novel from information market Low High
  • 135. Novel Common Low High
  • 136. Common Six Sigma Novel Low High
  • 137. Common Commodity Six Sigma Novel Low High
  • 138. Common Six Sigma Innovation Novel Low High
  • 139. Common Different Methodologies Novel Low High
  • 140. Common Defined (Prince 2) Dynamic (XP) Novel Low High
  • 141. Common Phone (You) Novel Low High
  • 142. Common Phone (Everyone Else) Phone (You) Novel Low High
  • 143. Common Phone (Everyone Else) Competitive Gap Phone (You) Novel Low High
  • 144. PRESSURE New Services
  • 145. Novel Common Low High
  • 146. Common Everyone Else You Novel Low High
  • 147. Common Everyone Else You Novel Low High
  • 148. Common Everyone Else Competitive Gap You Novel Low High
  • 149.
  • 150.
  • 151.
  • 152. Red Queen Hypothesis Professor Leigh M. Van Valen
  • 153. Creative Destruction Joseph A. Schumpeter (1883 - 1950)
  • 155. Innovate to survive tomorrow. Adapt to survive today.
  • 156. Novel Common Low High
  • 157. Innovation Paradox Survival today [adaption] requires ‘coherence, coordination and stability’. Innovation [survival tomorrow] requires the replacement of these virtues. Salaman & Storey
  • 158. Common Novel Well defined Low High
  • 159. Common Common place Novel Well defined Low High
  • 160. As ... becomes ubiquitous ... it has no strategic value Nick Carr
  • 161. Common New Low High
  • 162. Common New Low High Uncertain
  • 163. 1 Future Value ∝ Certainty
  • 164.
  • 165. Invention Idea Innovation Services Discovery
  • 166. Components Invention Idea Innovation Services Discovery
  • 167. Common e r vic Se io n at n ov In t ion a en de Inv I Novel Low High e ry ov D isc
  • 168. Common Commodity Innovation Novel Low High
  • 169. Common Set budgets Recruit staff Maintain office facilities Manage payroll Capture customer Maintain search request for service rank listing Audit site useability Maintain corporate wiki Capture product predictions Novel from information market Low High
  • 170. Common Different Methodologies Novel Low High
  • 171. Common Everyone Else Competitive Gap You Novel Low High
  • 172. Innovate to survive tomorrow. Adapt to survive today.
  • 173. 1 Future Value ∝ Certainty
  • 174. Commoditisation Innovation Drivers Why nothing is simple Future
  • 175. Products Services
  • 176. Components Invention Idea Innovation Services Discovery
  • 177. Novel Common Low High
  • 178.
  • 179. Common Six Sigma Novel Low High
  • 180. Common Agile Novel Low High
  • 181. Common Commodity Novel Low High
  • 182. Common Commodity 20% Innovation Novel Low High
  • 183.
  • 184.
  • 185. billege practicalowl greencracker kevinsteele privatenobby vickispix
  • 186. giddygoose jm999uk mscolly Chicago Historical Society