The keynote was created to share industry trends in technology innovation for business leaders managing innovation disruptions for their organization. There is an overview of corporate innovation best practices, start-ups making positive traction, successful open innovation communities and advice for driving innovation initiatives for business leaders.
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World Innovation Convention Technology Trends Keynote
1. Navigating Innovation in the
Connected Economy
Kirsten Kuehl
World Innovation Convention
Cannes, France
2. Overview
• Corporate Innovation Opportunities and Obstacles
• Disruption Factors in Business Transformation
• Advice for Innovators and Calls to Action
3. ENGAGE THE
CROWDS!!!!!
Set the Course to Avoid the Obstacles
Source Obstacles: Frank Pillar
Insufficient
Resources
Lack of Internal
Commitment
Org & Admin
Barriers
Communications
Barriers
Workflow Rigidity Not Invented HereLegal Barriers Bottoms Up Mgmt
“Only 1 in 4 new product development efforts
will reach commercial launch”
-Product Development & Mgmt Association (PDMA)
4. Striking the Balance for Success
Legal Considerations Risk Taking and Experimentation
Profitability Considerations Investment toward R&D
Product Release Schedules Time for Innovation/Slow Hunch
Internal Focus Ecosystem/Collaboration Focus
Existing Business Innovation
Short Term Business Objectives Threat of Cannibalization
5. Striking the Balance for Success
Decentralized in Organization Executive Priority and Support
Complete Brand Control Engaging Customers/Partners
Business Model Best Practices Empowering Crowd/New Methods
Org Obstacles/Political Factors Org Alignment & Socialization
Existing Business Innovation
6. Corporate Innovation Realities
…we may be unable to foster the
innovation, creativity, and teamwork. . . .
Our transition from a private company to
a public company may result in a change
… which could harm our business.
Source: Fast Company, October 2013
8. Navigational Map for Current
Business Transformation
The Crowds
New Funding
Models
Collaborative
Ecosystem
Sharing
Economy
Maker
Movement
Disruption
Factors
9. The Wave of Crowds have Arrived
…What’s Possible with The Crowds?
300 × 105 - thematthewaaronshow.com
Customers engaged in a community produce 19% higher revenue
Source: Study University of Michigan
10. Why crowdsourcing firms see gold in mobile app ideas
August 3, 2012 | By Shane Schick
“Crowdsourcing has been picking up steam in the mobile app space
ever since Nokia introduced its IdeasProject portal.”
Increase in Community Driven Apps
11. Nielsen: 92% of consumers trust word of mouth
From Apps to Co-Creation to Marketplaces
McKinsey: up to 696B Euro annually influenced by social
12. Entries: 6,200 entries, > 2,800 designers, >70 countries
Likes: 166,000; Shares: 124,000
Visitors at nokiatune.audiodraft.com: 1.7M
Entries played on nokiatune.audiodraft.com: 13.5M
Community Created Ring Tones
http://nokiatune.audiodraft.com
13. The Maker Movement
•
“ To those who think the maker movement is about tinkerers in their
garage making things that are meaningful for them but not
high-value, high-volume that people are going to want, think again.”
- Lou Rassey, Principal McKinsey
19. Shifting Corporate Tides
“The elites—or managers in companies—no longer control the
conversation. This is how insurrections start. This isn’t just about
Arab spring. This is about corporate spring.”
-Marc Benioff, CEO, Salesforce.com
“The only constant is change. Companies that do not
change get left behind.” –John Chambers, CEO, Cisco
*Source: Gartner Nexus of Forces
Social Mobile
Cloud Information
Digital Enterprise*
Crowd
Influence
“If you have a problem, take it to the Internet to solve.” – Eric Schmidt
20. Ripple Effect with the Consumer
Listen, Learn &
Pilot
Engage
Personalization
&
Customization
Makers &
Marketplaces
Net Promoter
Score
Burberry: Art
of the Trench
Nikon @ SXSW
RED
Involve Advocates
& Champions
Uber
Nike Fuel Band
British Air Inno
Lab In the Sky
Moto X
Nike
Coke Freestyle
Dodge Dart
Campaign
Zazzy
Quirky
Etsy
Autodesk
Instructables
21. Wave of New Funding Models
• Increasing access to capital for entrepreneurs. Start up to scoop up.
• The benefits of meeting demand. Moving from perks to profit.
• Crowdfunding refines business planning, market validation and time to market.
• Million dollar hardware projects. Ubuntu Edge: 9.6M Euro >25K contributors
26. Changing Tides: Collaborative Ecosystems
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“Understanding the power of communities, personas of members,
their expectations, their aspirations and how to engage with them
essential skills for companies in the 21st century.”
-Gartner
27.
28. Effectively Navigate Transformation by
Building New Revenue Streams
The Crowds
New Funding
Models
Collaborative
Ecosystem
Sharing
Economy
Maker
Movement
Disruption
Factors
29. Be Brave, Bold &
Have Big Goals as
you Navigate
the New Economy
Increase Revenue
by Taking 20% of
Marketplace
Transactions
Evaluate Ecosystem
Partners and
Connect
Partner with the
Experienced in the
Collaboration
Economy
Stay the Course - Advice for Innovators
SHO-0234-2DA-6N
Join a Group of
Brands to
Collaborate and
Establish
Shared Value
Leverage the
Crowds: Outsource
or Engage with
Consumers
30. • Leverage the Crowds: Outsourcing a Piece of Repeatable Business Tasks or
Engage with Consumers in Guided Brand Activities
• Join a Group of Brands to Collaborate and Establish Combined Value
• Partner with an Experienced Veteran in the Collaborative Economy to Help
Guide Business Decisions, Tools and Launch Initiatives
• Evaluate the Ecosystem of Partners, Connect and Collaborate
• Deliver Business Results by Increasing Revenue through New Business Models
• Be Brave, Bold and Have Big Goals as you Navigate the New Economy
Advice for Innovators
31. Merci…Thank you
Kirsten Kuehl
World Innovation Convention
Mobile: + 1 415 279-5964
Email: kirsten.kuehl@outlook.com
www.linkedin.com/in/kirstenkuehl/
32. Credits, Research Input, SourcesResearch Reports: McKinsey, Gartner, Altimeter Group, Frost and Sullivan, Parks Associates, Nielson, Cisco IoE Report
Papers, Discussions, Diagrams: Kuhan Milroy, SAP; Slava Rubin, Indiegogo; Liz Wald, Indiegogo; David Allen Grier, President IEE; Dion Hinchcliff, ZDNet; Frank Pillar for Obstacles
to Innovation List from MIX paper; Jeremiah Owyang, Crowd Companies; Lucas Biewald, Crowdflower; Sydney Armani, CrowdFund Beat; Suzan Briganti, Totem; BlueFountain When
She Speaks Panel: Monique Morrow, Cisco, Daniela Busse, Samsung; Karen Catlin, CEO, Athentica; Athena Maikish, PhD, StubHub
Articles Referenced:
McKinsey http://www.mckinsey.com/insights/marketing_sales/five_no_regrets_moves_for_superior_customer_engagement
http://digitalinnovationtoday.com/word-of-mouth-still-most-trusted-resource-says-nielsen-implications-for-social-commerce/
http://www.mckinsey.com/insights/consumer_and_retail/how_retailers_can_keep_up_with_consumers
Intel/Autodesk/TechShop /Arduino http://www.anandtech.com/show/7387/intel-announces-galileo-quark-based-arduino-compatible-developer-board
http://gigaom.com/2013/10/10/intel-steps-up-to-help-techshop-fund-its-menlo-park-location-move/
http://www.fastcompany.com/section/most-innovative-companies-2013
http://www.huffingtonpost.com/2013/05/29/robert-scoble-google-glass_n_3354956.html?utm_hp_ref=influencers-and-innovation
http://www.fastcompany.com/section/most-innovative-companies-2013
http://www.innovationmanagement.se/2013/10/03/live-web-event-taking-open-innovation-management-one-level-up/
http://www.fastcompany.com/3019901/nike-ceo-hints-at-collaborative-future-for-fuelband
http://crowdfundbeat.com/crowdfunding-index/
http://www.wired.com/insights/2013/08/innovation-culture-and-social-technologies-getting-real-work-done/
http://www.mixprize.org/story/unleashing-inclusive-innovation
http://www.innovationmanagement.se/2013/09/19/an-industrial-process-for-driving-innovation-and-start-ups/
http://www.mixprize.org/hack/global-solutions-local-failure-overcoming-barriers-implementing-open-innovation
http://www.altimetergroup.com/2013/04/four-disruption-themes-for-business.html
http://www.wired.com/insights/2013/10/why-crowdsourcing-is-the-next-cloud-
computing/?utm_content=buffer499c4&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer#!
http://www.kickstarter.com/projects/mymobilerobots/rk-1-a-wifi-arduino-mobile-robot-for-ios-and-andro?play=1&ref=search
http://www.indiegogo.com/projects/gecko-make-your-smart-phone-smarter
http://www.kickstarter.com/projects/juicetank/juicetank-the-first-ever-iphone-charger-and-case-i?ref=search
http://www.newyorker.com/reporting/2013/07/29/130729fa_fact_gawande?currentPage=all
http://www.tlnt.com/2013/02/26/how-google-is-using-people-analytics-to-completely-reinvent-hr/
http://www.digitaltrends.com/mobile/samsungs-shotgun-phone-strategy/
http://www.huffingtonpost.com/2013/05/21/digital-camera-inventor-kodak-bankruptcy_n_3315622.html
http://www.fastcompany.com/3004790/stanford-study-claims-ipos-stifle-startups-innovation-chops
http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2011/Oct/1005_relay.html
http://www.indiegogo.com/projects/piper-smart-elegant-security-and-home-automation
http://www.kickstarter.com/projects/search?page=1&term=mobile+phones&utf8=%E2%9C%93
http://www.pwc.com/gx/en/innovationsurvey/index.jhtml
http://www.indiegogo.com/projects/y55-happiness-trainer-your-must-have-mobile-app
http://www.indiegogo.com/projects/idoorcam-answer-door-from-mobile-device
http://www.innovationmanagement.se/mailchimpforms/channel-one/MOOI-october-30.php
http://www.theatlantic.com/technology/archive/2013/09/if-this-toaster-could-talk/
http://www.forbes.com/sites/techonomy/2011/09/07/social-power-and-the-coming-corporate-revolution/2/
http://www.content-loop.com/the-top-7-social-media-marketing-trends-that-will-dominate-2014/#!
Notes de l'éditeur
Right out of the gate I want to give you a sobering statistic ONLY 25% of NEW PRODUCTS WILL REACH COMMERCIAL LAUNCH AND THAT DOESN’T EVEN SAY WHETHER THE PRODUCT WILL BE SUCCESSFUL OR NOT. The pressure is on for everybody now. Markets are moving faster and we can’t afford to use the same traditional models of spending months doing market research and market testing. That luxury is gone. You need to get products, services and solutions to market faster and with less money than you did previously. How are you going to do that?! Any ideas?
What if I told you I have a better answer for you? What if that answer is even more cost effective and easier than the way you are doing it now?
Through the course of the presentation, I’ll be providing you with a compass on how to get to market faster, more cost effectively and bring in new revenue in the process. So put your rudder in the water, avoid the obstacles, don’t crash into the rocks and let’s set our course for smooth sailing in this innovation adventure.
We all face challenges in innovation. There are many factors to balance amidst the flow of information, processes and change. It is important for us to recognize these factors and constantly be correcting our navigational course to ensure we achieve both velocity and efficiency.
Internal Focus:
Why is it that innovation often happens in pockets of space? Jonah Lehrer, Google, Apple
In one of the sessions at CrowdConf, Crowdflower’s conference in San Francisco, Autodesk and vmWare
Short Term/Threat and Product Release schedules/Innovation:
Kodak a beautiful example – in the business of selling photos, they had digital camera technologies in the organization before anyone else in the industry, but it threatened Kodak’s core business so it kept getting pushed down and stifled…where did it take them. Bankrupcy – although I just read they returned to NYSE so perhaps they’ll rise again. (smile)
Product Release Schedule/Innovation:
Ideas build upon ideas over time.
Slow hunch/slow ideas : Darwin Origin of Species, Edison, Dr Atul Gawante, n
Criticism and debate are critical to creating innovation. Appropriate criticism will advance the debate and people’s ideas will get closer to tangible solutions.
Profitability vs. R&D:
Great quote from Tim O’Reilly, “I talked about our ideals, our goal to create more value than capture, to change the world by spreading ideas of innovators. I forgot to make sure everyone still knew we were still a business.” “Money in a business is like gas in a car. You have to fill the tank.”
Nike’s Brandon Burroughs who works on Fuel Band (tracks physical activity during day), “Innovation Nike style is messy, exhausting and a process from a myriad of options and countless failures.”
Legal Considerations:
It is important for your innovators to have passion and want to make improvements through experimentation and risk taking, but it’s also important to know when to harness that drive inside a large organization and know when to stop. Then as innovators you need to decide if your passion has business proof and you’ll push in your organization or go it alone with your own business. Passion without recognition of risk is a landmine inside large organizations. Often large organizations say “go innovate”, but don’t really want to leave room for failure, learning, iterating.
Uber
Can’t stress enough the importance of executive support. It is so important in an organization as we are discussing there are so many factors to balance out in the organization. On the other hand, the goal is for everyone in the organization to have an innovative spirit.
Organizational Obstacles:
Without executive alignment you’ll start to run into political factors. Socialization and collaboration done the right way can be very beneficial.
You may have read about Steve Jobs purposeful design of creating collaborative areas in the workplace. Locating a limited set of bathrooms in one place. Workplace cafeterias are great for that too and give reason for not eating lunch at your desk every day. Turns out there is value in bumping into people working on things very different from yourself. Google has design their workspace to drive collaboration and people from different functions running in to one another.
Google found increased innovation comes from a combination of 3 factors that they track and try to incorporate into their business:
Discovery (learning) – that’s why coming to conferences like this is great, you bump into innovation, get real, talk and connect, learn
Collaboration
Fun
Google increased discovery and learning through project rotations and learning through failures.
Complete Brand Control: I think that is a bit of a thing of the past. You can definitely own your brand and guide it, but it is so important to listen to your customers and partners and involve them.
Business Models/New Methods:
Often in large organizations were are looking at small incremental improvement and focus instead of planning and figuring out the best way to get where you need to go. The market is moving too fast. With the disruptions now taking place in the market, it is important to try new methods to get you to market faster, but here is another innovation reality
Google, Zynga and Facebook quoted similar items in IPO filings prior to going public. Innovation more difficult when responsible to shareholders.
Long list of examples for failed innovation, but just to stimulate your thinking a bit, how about:
Wang Computers
Novell
Tower Records
Kodak
Philips HDTV
Sony portable music and what iTunes did to that
McKinsey estimates that social technologies will account for as much as $76 billion in consumer value by 2015). (56B Euro by 2015)
So here is your navigational map for business transformation. I’d like to share these business transformations as I’ve been working at the intersection of them and I’d like you to learn from my experiences so that you can be prepared and create efficiencies in your business by leveraging my experience. We’ll be discussing each of these areas so you can be aware and navigate them successfully.
(McKinsey looked at the annual economic impact of 12 disruptive technologies for the year 2025 and estimated the technologies to have a $14-33 Trillion impact. These disruptions represent some of those disruptors, but not all.)
A number of crowds have formed it was hard to put this slide together as there are so many of them now and it really would take several slides to include them all. At the top I have some of the innovation and design crowds and the bottom covers more task oriented crowds.
There are generally six types of crowdsourcing:
Microtasking
Macrotasking
Crowd contests
Develop new products
Crowdfunding
Self-organized crowd providing services
It is important to start rethinking your own organizations:
How is work organized? What disruptions are at play? How will it change in the future?
University of Michigan study: revenue from customers engaged in a companies community with 19% higher on average than those that aren’t
I was at CrowdConf a few weeks ago and Crowdflower stated that they have already made over 1B judgments in 2013.
Leverage the knowledge, skill, expertise and experience from the crowds. Think about how you can work with the crowds. Think about how you can motivate people and engage them into action through gamefication or perks. Can build in ways to determine reputation to find people who are best at specific skills and get them thinking about a problem. Reduce calls to call centers
Ford has used gamification for learning and then to turn them into experts. Find the influencers in a sector and engage them.
McKinsey Global Institute estimates that the automation of knowledge work will have a $5-7 trillion dollar impact by 2025.
Global reach, local expertise
People want collaboration with big brands.
Find a piece of your business you can outsource to the crowds. Some examples I’ve seen are in the area of support, creating forums for customers and brand ambassadors to talk about using your products. They generally spend more time using them than you do because you are busy building products or their collective intelligence and masses outweigh the efforts of a few people.
Now I’d like to show you some examples of the power of crowdsourcing…
Fierce Developer gave us credit for being a first mover in the market and influencing others to get into the space. Here are some examples of some of our first apps we created. I may tear up here as these are like my children:
1 Doodling together – single person doodling or bringing together a canvas for multiple people to doodle together and create a collaborative masterpiece.
Similarly mGrifitti is an app that replaces bathroom walls or train cars in that people can write in virtual places and leave their mark through GPS for the next person who comes along and wants to add something. If you haven’t heard about Firminiches technique of innovation, they actually use Graffiti to track to predict future trends with some amount of accuracy. Now if you can collect the data from a virtual space, even better, that’s big data and analytics at it’s best.
Blood Sprint – sourcing blood supply
Preschool app - Finally we have the preschool app which provided basic learning tools for preschoolers and was very meaningful to families in developing countries who’s children couldn’t attend school, but they could learn the basics skills on their parents mobile phone.
92% of consumers trust word of mouth marketing to influence their decisions (Nielsen Global Trust in Advertising Report April 2012)
One third of consumer spending could be influenced by “social” interactions, which could mean that $940 billion of annual consumption in some US and European categories could be influenced by social input. (696B Euros)
Crowdtilt- funding platform for group experiences, purchases, causes
Bill Lee, HBR: “Building communities is where one of the largest reservoirs of untapped value lies. Help customers build social capital through reputation and affiliated networks.”
McKinsey Global Institute states that social is critical to the consumer decision journey. Electronics is the most active category and 16% of all shoppers rely on social input to make purchase decisions.
Here was one of our crowdsourcing initiatives to crowdsource ring tones to modernize that old mobile tune. It was really exciting to see all the entries that came in. If you have time go to the site and check out the jazz versions, orchestral renditions, African inspirations, the Ausssies brought in the digeridoo. Ultimately the winner was a DubSteb compilation from the crowd….I don’t care for it myself, but my daughter uses it and it is quite popular in the tweens and teens. When I experienced DubSteb being the number one, I realized how much value I had missed with traditional product marketing methods. How you feel about a product must someone influence it’s destiny and I can see why CPG companies are utilizing these methods as you can diversify your product portfolio significantly by allowing the crowd to reveal market segments of interest that will help with product decisions across a portfolio of options.
Do it your self maker – Product, Platform, Service, Community
Zazzy: community in Europe doing 3D printed jewelry
Square – you may not be familiar with it as it is prevalent in the US, but it is similar to JUSP or iZettle. It is a device that you connect to your device for mobile credit card payments. It was created by some people in TechShop which is like a tinkerers garage with the tools to make things. It is very prevalent in Silicon Valley with several sites and contributes to the Maker Faire movement.
Arduino and Raspberry Pi seem like small things, but have you checked out the crowdfunding sites lately? People are doing amazing things with these technologies and motivating a young generation of innovators.
Empowering the “maker” movement
Everyone has the ability to create and personalize technology in this case
Not sure why mobile companies don’t find more venues to work with consumers. CrowdSpring worked with LG to run a design challenge a few years ago and there was tremendous response. 400 designs in 6 weeks. LG ended up hiring Gwen Fredrick from the competition due to innovative design.
It isn’t feasible for consumers to design their own phones due to economies of scale, but what options can you give them to help engage them.
Test the market, validate concepts, find new talent, engage the consumer
Have you seen Moto X : allowing you to customize your phone with colors that you choose for the front, back, buttons.
We didn’t ask for people to solve this problem, but it was hugely popular. How many of you have the “Octopus problem”? (Pause) You are looking a little confused. (Pick up the mangled cables) The Octopus problem!
How often do we deal with these annoyances day in and day out and waste our time on them? Thank heaven that design thinking is now a subject across universities. We can now vocalize the issue and solve the problem in creative ways.
Another thing that came up in one of our competitions was a way to click into a specific location on Windows Phone screens to make corrections. When I saw that idea come in I realized that I had spent probably hours back spacing through text or repeatedly trying to get my finger tip to the exact location in a sentence where I wanted to correct one letter. How huge it would be to me as a consumer if someone actually cared enough to fix the problem. I might feel cared about and appreciated. It is these kinds of discoveries and insights that can come from the crowds and do.
Tremendous media value, little expense
Companies are still scrambling to catch up, and need to transition to open up to these market dynamics. The larger size of the consumer market attracts more investment and innovation, and economies of scale drive down prices, which in turn leads to empowerment of the individual over the company.
If you have a problem, take it to the Internet to solve. – Eric Schmidt
Cisco IoT Report: Competition will intensify as IoE evens the playing field between large and small companies around the globe. Given the level of evident parity, there is real potential for a shakeup of the competitive landscape in nearly every industry.
Embed analytics and capture big data. Reinvent the customer experience by using analytics. You’ll see a 10-15% increase in the effectiveness of your marketing spend. Insights lead to action and you’ll need that if you are going to outsmart your crowd into a meaningful business.
Companies need to establish TRUST with millenials and consumers. Millenials are making up at least 1/3 of the workforce and seek to engage with companies who embrace open ways of working, a company with a purpose, a social mission and looking to companies with sustainability
Companies need to establish TRUST with millenials and consumers.
Millennials: In studying GE, SAP, Nokia and Ford’s efforts with the crowds, it appears that 15% or more of participation comes from students.
Empowerment, Democratization, Authenticity, Flexibility, Humility is what’s needed and most business leaders aren’t used to that. It will be a challenging transition for some.
Consultant and author Gary Hamel: “The underlying principles on the Web of natural hierarchy, transparency, collaboration—those characteristics are going to have to invade management.
Tim O’Reilly posted an article on 6 lessions learned from failures and he said “Most were failures in building and cultivating the company culture.”
Management Innovation Exchange – Innovation Leaders rethinking Management for the 21st century – Innovation at every level of org, rethinking hierarchical
“Firms dominate by producing continuous innovation. Cannot happen until strategic shift toward a focus on great people management. Google People Analytics – diversity, retention algorithm, workplace design that drives collaboration.
Companies are still scrambling to catch up, and need to transition to open up to these market dynamics. Consumer technology will remain better and cheaper than what’s made for business. The larger size of the consumer market attracts more investment and innovation, and economies of scale drive down prices—a formula at the heart of the relative empowerment of the individual over the company.
“Individuals are elated with these new capabilities, yet corporations are as risk-averse as they always were. Many companies are hesitant to create a culture that permits self-empowerment because they are afraid of what might happen if people did things by themselves.”
-Ray Ozzie
Companies need to establish TRUST with millenials and consumers.
If you have a problem, take it to the Internet to solve. – Eric Schmidt
Millennials:
Empowerment, Democratization, Authenticity, Flexibility, Humility is what’s needed and most business leaders aren’t used to that. It will be a challenging transition for some.
Millenials are making up at least 1/3 of the workforce and seek to engage with companies who embrace open ways of working, a company with a purpose, a social mission and looking to companies with sustainability
GE Ecomagination Challenge with Bright Idea – smart grid technology challenge – 15% of submissions came from students
We saw something similar at Nokia, 3 of the 5 winners from our 3D printing challenge were students or affiliated with a university
SAP engaging students and universities
In this new world of business, companies and leaders will have to show authenticity, fairness, transparency and good faith. -Forbes
McKinsey Quarterly
Creating Value in a Distiributed Economy
Shoshana Zuboff
Careful because consumers and employees are ready to “stick it to the man” if there isn’t fairness and authenticity.
The Support Economy: Why Corporations are Failing Individuals and the Next Episode of Capitalism.
An increasing number of enlightened companies aim to turn social power to their own advantage by putting customers not in jail but on a pedestal. They become healthily obsessed with what’s said about them online.
Ford takes cues from young people immersed in social media in how it designs cars and how it communicates. “Digital suffrage is upon us,” proclaims Venkatash Prasad, Ford’s high-wattage leader of product social networking efforts
Sheryl Connelly, Ford’s manager of consumer trends, in another e-mail: “If you want to reach a millennial, you have to go where they live, and that means online. Millennials want more than engagement. They want their contributions to be meaningful.”
Coca-Cola is installing machines in fast-food restaurants that allow customers to formulate their own beverages. No longer choose just a Coke or Sprite. Now you can come up with new flavor combinations and other customizations that your newly empowered heart desires.
Consultant and author Gary Hamel: “The underlying principles on the Web of natural hierarchy, transparency, collaboration and all the rest—those characteristics are going to have to invade management. The idea of a hierarchy that fundamentally empowers the few and disempowers the many is more or less dead.” To demonstrate what’s possible in this new world, Hamel helped spearhead an online forum for Web-influenced management ideas at www.managementexchange.com.
Don’t think that the trends in technology, and resulting social power, will ever give you a respite from the tides of change. Says Microsoft and Lotus veteran Ozzie: “All this was unstoppable from the moment somebody installed the first network—this steady march toward reducing friction and reducing transaction costs faced by individuals. And you ain’t seen nothin’ yet.”
Tim O’Reilly posted an article on 6 lessions learned from failures and he said “Most were failures in building and cultivating the company culture.” He also talked about it being their mission to , “To Change the world by capturing and transmitting the knowledge of innovators.”
Hiten Shah of CrazyEgg/Kismetrics “in the end we learned that the people whom you partner with when starting a business is one of the most critical factors.”
Angela Ahrendts who just left Burberry to head up Apple’s retail efforts talked about how consultants told her board that she would fail and they underestimated was “Energy” the energy she created herself and with the collaboration of the team.
Cisco IoE Report:
Midsize firms and companies
from emerging economies pose a formidable and growing challenge to market
incumbents.
• Midsize firms (500-1,999 employees) are actually capturing slightly more Value
at Stake on a percentage basis than large enterprises with at least 10,000
employees — 54.1 percent versus 52.4 percent.
• Companies in emerging markets are more confident in their ability to realize IoE
value. On a scale of 1-10, where 10 is “extremely confident,” executives from
emerging markets scored a 7.8, in contrast to 6.7 for executives in developed
markets. Many of these countries, such as Brazil, China, and India, have increased
their IT investments in recent years at a rate that far outpaces the global average.
In addition, IoE technology drivers such as cloud services and mobility have made
it possible for emerging-market firms to close ground quickly on those companies
in developed markets that have not remained on the leading edge of technology
innovation and adoption.
Management Innovation Exchange – Innovation Leaders rethinking Management for the 21st century – Innovation at every level of org, rethinking hierarchical
Silicon Valley History & Focus on Ecosystem (Open, Diverse, Sharing)
“Firms dominate by producing continuous innovation. Cannot happen until strategic shift toward a focus on great people management. Google People Analytics – diversity, retention algorithm, workplace design that drives collaboration.
Companies are still scrambling to catch up, and need to transition to open up to these market dynamics. Consumer technology will remain better and cheaper than what’s made for business. The larger size of the consumer market attracts more investment and innovation, and economies of scale drive down prices—a formula at the heart of the relative empowerment of the individual over the company.
“Individuals are elated with these new capabilities, yet corporations are as risk-averse as they always were. Many companies are hesitant to create a culture that permits self-empowerment because they are afraid of what might happen if people did things by themselves.”
-Ray Ozzie
Companies need to establish TRUST with millenials and consumers.
If you have a problem, take it to the Internet to solve. – Eric Schmidt
Millennials:
Empowerment, Democratization, Authenticity, Flexibility, Humility is what’s needed and most business leaders aren’t used to that. It will be a challenging transition for some.
Millenials are making up at least 1/3 of the workforce and seek to engage with companies who embrace open ways of working, a company with a purpose, a social mission and looking to companies with sustainability
GE Ecomagination Challenge with Bright Idea – smart grid technology challenge – 15% of submissions came from students
We saw something similar at Nokia, 3 of the 5 winners from our 3D printing challenge were students or affiliated with a university
In this new world of business, companies and leaders will have to show authenticity, fairness, transparency and good faith. -Forbes
McKinsey Quarterly
Creating Value in a Distiributed Economy
Shoshana Zuboff
Careful because consumers and employees are ready to “stick it to the man” if there isn’t fairness and authenticity.
The Support Economy: Why Corporations are Failing Individuals and the Next Episode of Capitalism.
An increasing number of enlightened companies aim to turn social power to their own advantage by putting customers not in jail but on a pedestal. They become healthily obsessed with what’s said about them online.
Ford takes cues from young people immersed in social media in how it designs cars and how it communicates. “Digital suffrage is upon us,” proclaims Venkatash Prasad, Ford’s high-wattage leader of product social networking efforts
Sheryl Connelly, Ford’s manager of consumer trends, in another e-mail: “If you want to reach a millennial, you have to go where they live, and that means online. Millennials want more than engagement. They want their contributions to be meaningful.”
Coca-Cola is installing machines in fast-food restaurants that allow customers to formulate their own beverages. No longer choose just a Coke or Sprite. Now you can come up with new flavor combinations and other customizations that your newly empowered heart desires.
Consultant and author Gary Hamel: “The underlying principles on the Web of natural hierarchy, transparency, collaboration and all the rest—those characteristics are going to have to invade management. The idea of a hierarchy that fundamentally empowers the few and disempowers the many is more or less dead.” To demonstrate what’s possible in this new world, Hamel helped spearhead an online forum for Web-influenced management ideas at www.managementexchange.com.
Don’t think that the trends in technology, and resulting social power, will ever give you a respite from the tides of change. Says Microsoft and Lotus veteran Ozzie: “All this was unstoppable from the moment somebody installed the first network—this steady march toward reducing friction and reducing transaction costs faced by individuals. And you ain’t seen nothin’ yet.”
Tim O’Reilly posted an article on 6 lessions learned from failures and he said “Most were failures in building and cultivating the company culture.” He also talked about it being their mission to , “To Change the world by capturing and transmitting the knowledge of innovators.”
Hiten Shah of CrazyEgg/Kismetrics “in the end we learned that the people whom you partner with when starting a business is one of the most critical factors.”
Angela Ahrendts who just left Burberry to head up Apple’s retail efforts talked about how consultants told her board that she would fail and they underestimated was “Energy” the energy she created herself and with the collaboration of the team.
McKinsey estimates that social technologies will account for as much as $76 billion in consumer value by 2015). Or 56B Euro
RED Social Media (many brands coming together to fight against AIDS and malaria, cause related, but also commercial, started with Gap campaign), Autodesk Instructables
Bill Lee “Building communities is where one of the largest reservoirs of untapped value lies. Help customers build social capital through reputation and affiliated networks.”
Consumers are likely to be more loyal when you allow them to personalize and engage.
Nike – Personalized Shoes, Fuel Band
Brandon Burroughs of Nike, “Really cool stuff can come from the opportunity to test without constraints.”
McKinsey Global Institute has published an excellent report on the End to End Value Chain of utilizing social technologies across enterprises. They call out 10 ways to do it to address it across four segments of the value chain: product development, operations and distribution, marketing/sales and customer service. They also address two areas of increasing organizational productivity by using social technologies.
People want interaction and collaboration with a brand and if you don’t engage them, you might just find yourself left behind
Adidas – social media fiasco over overcharged jerseys
Hershey Case Study: students to social media
The students had come to the U.S. on J-1 visas for the summer to experience America and improve their English. Instead, they claim they ended up working stressful full-time jobs for a sub-contractor at the plant in exchange for meager pay. Several of the students said they each paid between $3,000 and $6,000 to come to the U.S., and that after their housing costs were deducted they were taking home between $40 and $140 per week.
With the help of U.S. labor activists, hundreds of the students staged a high-profile walkout at the plant this week that led to the arrests of three Pennsylvania union leaders. Some of the foreign students have continued to work at the plant, while others have taken to the streets of Hershey to protest.
The answer: Always on social media. Hearsay Social, global, authentic, responsive, trustworthy
Personalization: According to CMS Wire only 13% of companies have added personalization to mobile experiences and 33% aren’t planning on adding it in the next 12 months. What a huge loss! This is only talking about mobile experiences where we can capture all kinds of great data, but if that is the most that companies are doing, how can we shift it toward product personalization? Consumers are likely to be more loyal when you allow them to personalize and engage.
Nike – Personalized Shoes, Fuel Band
Brandon Burroughs of Nike, “Really cool stuff can come from the opportunity to test without constraints.”
The Maker Movement is really changing things.
Square – you may not be familiar with it as it is prevalent in the US, but it is similar to JUSP or iZettle. It is a device that you connect to your device for mobile credit card payments. It was created by some people in TechShop which is like a tinkerers garage with the tools to make things. It is very prevalent in Silicon Valley with several sites and contributes to the Maker Faire movement.
Arduino and Raspberry Pi seem like small things, but have you checked out the crowdfunding sites lately? People are doing amazing things with these technologies and motivating a young generation of innovators.
Taking away power from a single decision maker. No longer a VC or venture decision. Increasing supply for demand. Access to capital needed.
Ubuntu raised almost $13M with over 25K contributors (9.6M Euro)
Growing importance of social capital as a metric for raising capital. Role of the investor my no longer be banks or VCs, but the decision is made by the crowd. With IPOs it is all or nothing.
Y Combinator:
Google bought 7 YC start ups
Facebook bought 6 YC start ups
Twitter bought 4 YC start ups
Dropbox valued at more than$4B
WeFunder – equity based funding, crowdfunding
Crowdfunding Opportunities for new MBAs –Data Driven MBA Business Plan
The Pitch: Raise 114% more money with a video, 3-8 perks, $70, >4 people
Proactive: update <5 days, raise 4x more, 5x likely to reach goal 25% 1st week
Audience: 1/3 network, 1/3 friends of network, 1/3 Indiegogo platform
Helps predict consumer demand and is a quick learning process for entrepreneurs. You can make adjustments, come out with a new prototype or tweak your incentives. It is real time feedback from the market and great/free market research.
AngelList – combines talent, investors and incubators
Canary – Mobile Hardware Device in Security space
Venture funding attempts from Silicon Valley
Then tried Indiegogo - $2M funded
VC turned around and wanted to give them the money
Million Dollar Hardware Projects on Crowdfunding Platforms:
Person, Cause, Idea
Perks
Participate
Profit – Big Push for Equity Focus
Top Three Funding Strategies:
Email
Facebook
Twitter
Frost and Sullivan estimates $4.4M in carsharing by 2016 ( 3.2M Euro)
According to Altimeter, out of 200 collaborative economy startups, total funding was over $2B. (1.4B Euro) Airbnb $130M and Lyft raised $60M.
People are starting to get what they need from each other. Will you join the conversation to get left behind? Engage with the people or you may become irrelevant? What if you are the only one not have conversations and engaging with your customers? Do you think your fans will stay engaged?
With Locals – connecting travelers with locals for dining, experiences, tours, etc.
SnapCar is a mobile application with a network of chauffered vehicles that will pick you up on demand: in two clicks.
Searcle allows you to give money to people via a link. Searcle is the easiest and fastest way to pay each other. Using this free app you can exchange money with all your Facebook friends. The notification system keeps you informed of all payments. If someone fails to pay Searcle will automatically send payment reminders. Searcle will help get your money back after splitting the bill. Searcle works 24 hours a day and is there for everyone, no matter where you bank
Bankeez is a fast, simple and secure service to collect money, flexible enough for all kinds of fundraising events and without any commercial affiliation.
Need to collect dues from your relatives? To put money into a kitty? To organize a ticket sale for a special event or a fundraising for a group activity or for an organization? Bankeez is THE secure solution for all your fundraisings and group payments!
GM and On Star customers benefit from partnership between GM and RelayRides
Those examples are powerful, but the real power is when you build both breadth and depth to your partnerships and build out a full blown ecosystem. I chose these companies because I think either they are leaders in the space or because they represent the enterprise level collaborative ecosystems including both customers and business parters.
Imagine by Jonah Lehrer, The Wide Lens by Rod Adner
Bill Lee “Building communities is where one of the largest reservoirs of untapped value lies. Help customers build social capital through reputation and affiliated networks.”
Silicon Valley History & Focus on Ecosystem (Open, Diverse, Sharing)
Revenue opportunity: 20% cut in 2 sided marketplace through platform or collaborative partnerships
McKinsey Global Institute states that social is critical to the consumer decision journey. Electronics is the most active category and 16% of all shoppers rely on social input to make purchase decisions. One third of consumer spending could be influenced by “social” interactions, which could mean that $940 billion of annual consumption in some US and European categories could be influenced by social input. (696B Euro)
Need a strong reputation and build credibility and trust with the consumer. Brand recognition and consumer perception are critical in this market so start to find ways that you can influence and engage consumers with your products.
Platform –
Customer and employee
Crowd becomes our company
More connections in Ecosystem, more possibility is created
Organizations need to rethink positions, function and status as the marketplaces and crowds are impacting this. Tim O’Reilly talks about “Innovation continuously shifting toward a focus on great people management.
Elements making up open innovation:
-People
-Diversity
-Open
-Global
Forbes article Fredrick Allen “Why Great companies Innovation Fail – It’s all in the Ecosystem”
“Diffusion is essentially a social process through which people talking to people spread innovation.” Scholar Everett Rogers on how ideas spread.. Mass media introduces an idea, but people follow people they trust – effort is a social process. People talking to people is how the world’s standards change. Trip Advisor – Strangers vs. my network
Long term relationship with the customer
One thing that can be learned from the crowdfunding companies by participating on their sites:
Market testing
Consumer sentiment and commitment to pay
Deep engagement
Shared fate
Embed analytics and capture big data. Reinvent the customer experience by using analytics. You’ll see a 10-15% increase3 in the effectiveness of your marketing spend. Insights lead to action and you’ll need that if you are going to outsmart your crowd and corral your cat herding into a meaningful business.
McKinsey looked at the annual economic impact of 12 disruptive technologies for the year 2025 and estimated the technologies to have a $14-33 Trillion impact. These disruptions represent some of those disruptors, but not all. The point is that disruption and transition are a given in technology in this day and age and I’d like to share these business transformations as I’ve been working at the intersection of them and I’d like you to learn from my experiences so that you can be prepared and create efficiencies in your business by leveraging my experience.
