Monthly Archives: February 2009

Creating a culture of innovation

Since reading Gary Hamel’s latest book The Future of Management, I have been intrigued and inspired by the way W.L. Gore has innovation running through its veins, where the key word is collaboration.

In short, if you have an idea at W.L. Gore you are free to pursue it, although with such discipline that results from normal work are not jeopardized. There are no formal processes to guide these innovations. ‘All’ you need to do is to convince your colleagues about the potential value of your idea and get their help.

The mechanism is quite simple. Ideas with high perceived value will get a lot of support and bad ideas will not get support and vanish.

Working in this way W.L. Gore is able to scan great numbers of ideas and many are killed in an early stage and in a natural way.

The result is that W.L Gore is a very healthy company, is viewed as one of the most innovative companies in the world, and has been consistently ranked high in the lists of best places to work.

We use parts of the Gore vision at our clients a lot to improve the way they innovate.

I came across a presentation of W.L. Gore’s CEO, Terri Kelly, for MIT Sloan School of management. They summarized her talk as follows:

“A lot of companies ask about ’How do you innovate ? What do you invest in R&D?’ They’re not really the right questions to ask. We would flip that and talk more around ‘How do we create the right environment where collaboration happens naturally — that people actually want to work together, that they actually like to be part of something greater than just the individual contribution?’ And if you get that part right, all the other pieces fall in place that allow us to creat this great innovation cycle within Gore.”

Here is the entire 55 minute presentation. It is absolutely worthwhile to watch!

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Communities an alternative for CRM?

We see a lot of corporates showing interest in communities these days. Many focus on building their own communities or playing a role in large generalistic communities like Youtube, Facebook, or Dutch case Hyves.

Successfully starting and maintaining a consumer community is difficult and takes a long time to do so. I would estimate chances of success around 1%-2%.

Using large generalistic communities for your communication in a way is quite similar to the traditional mass marketing. Even though companies are utilizing new methods, like virals, the audience is quite broad and communication remains expensive, just like in the days of push marketing on radio, TV, and print.

Why is so much budget flowing to projects with such low chances of success? I would like to share another perspective to working with communities.

I remember the late 90′s where CRM and data mining were big buzz words. And with some companies they still are. The point is to analyse data to find homogeneous groups to better fine-tune our proposition and communication. The interesting thing is that specialised communities are such homogeneous and focused groups.

The Harley Davidson Community in the picture below is a great example. This group consists of people that cherish their machine, the ‘Harley life’, and other Harley people. I think that a lot of marketeers could easily decide if this group is interesting to them, and if yes, make them a good proposition with a relatively limited investment.

Therefore, with specialised communities your CRM or data mining has been done for you and you can skip right to making the community a crisp proposition that suits them. To my mind this is low hanging fruit that can be harvested with small investments and quick returns. I have yet to speak to a marketeer from a large corporation who has realised this and acted upon it.

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Innovation Empowerment

Aberdeen Group just released a new research report that examines the differences between leaders and laggards in innovation. The study shows that leaders meet targets for new product revenues 46 percent more often than their average industry peers and that they meet launch dates 47 percent more often.The report gives an overview of the actions that innovation leaders employ to become more innovative. It is good to see that it aligns with our vision on innovation empowerment. Aberdeen calls it the Pace Model, see below. 
Aberdeen Group Pace model 

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Innovate the Google way

The Google StoryRecently I read the inspiring book “The Google Story“. Google is seen as one of the big examples of an innovative company and a lot of people state the 20% rule as a reason for that high level of innovation. The 20% rule refers to the percentage of time that software engineers get to work on whatever interests them. Personally I think that the 20% rule is not the main reason that Google excels at innovation. What is more important to my opinion is the culture and work philosophy at the company. Let me elaborate on that…

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I am what I create

I came across this talk by John Seely Brown at the Carnegie Foundation for the Advancement of Teaching on reforming the way we educate kids. He proposes to change the way kids are taught to allow for more tinkering and creating. Kids learn to find information themselves and build upon the information they find by sharing and collaborating with each other. John Seely Brown ends his talk by saying the current technology greatly supports such tinkering, collaborating, and sharing.

Why is this talk relevant to innovation? If you look at truly innovative companies, they have achieved a state where a broad base of their employees are innovating in such a way. If employees come up with an idea, they start the preliminary research themselves. They collaborate with other colleagues or people outside the company to enrich their idea. They share what they are doing so the work is useful for the other employees and can be built upon.

Working in this manner does not require large innovation budgets, which is a big plus in the current state of the economy.

We are currently working with a large Dutch company to achieve such a state of ‘continuous innovation.’ They are using our innovation portal to share and collaborate and for all employees it is possible to be coached on how to engage in this process.

Watch the talk and imagine your employees or colleagues working in such a way…..

httpv://www.youtube.com/watch?v=9u-MczVpkUA&eurl=http://www.businessinnovationfactory.com/weblog/&feature=player_embedded

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UPC Fiber Power Idea Challenge

With the launch of 120Mbps internet, UPC wanted to involve employees and customers. Innovation Factory proposed to start an Idea Challenge amongst employees from ten European countries to come up with new products and services for using this super fast internet connection. Now UPC has decided to open up the challenge for customers in the Netherlands.