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January 10, 2006

The Art of Innovation

I'm getting tired of writing about lies, so today I'm covering truths. Specifically, the truths of innovation. I hold these truths to not be self-evident; hence we see so little innovation.

  1. Jump to the next curve. Too many companies duke it out on the same curve. If they were daisy wheel printer companies, they think innovation means adding Helvetica in 24 points. Instead, they should invent laser printing. True innovation happens when a company jumps to the next curve--or better still, invents the next curve, so set your goals high.
  2. Don't worry, be crappy. An innovator doesn't worry about shipping an innovative product with elements of crappiness if it's truly innovative. The first permutation of a innovation is seldom perfect--Macintosh, for example, didn't have software (thanks to me), a hard disk (it wouldn't matter with no software anyway), slots, and color. If a company waits--for example, the engineers convince management to add more features--until everything is perfect, it will never ship, and the market will pass it by.
  3. Churn, baby, churn. I'm saying it's okay to ship crap--I'm not saying that it's okay to stay crappy. A company must improve version 1.0 and create version 1.1, 1.2, ... 2.0. This is a difficult lesson to learn because it's so hard to ship an innovation; therefore, the last thing employees want to deal with is complaints about their perfect baby. Innovation is not an event. It's a process.
  4. Don't be afraid to polarize people. Most companies want to create the holy grail of products that appeals to every demographic, social-economic background, and geographic location. To attempt to do so guarantees mediocrity. Instead, create great DICEE products that make segments of people very happy. And fear not if these products make other segments unhappy. The worst case is to incite no passionate reactions at all, and that happens when companies try to make everyone happy.
  5. Break down the barriers. The way life should work is that innovative products are easy to sell. Dream on. Life isn't fair. Indeed, the more innovative, the more barriers the status quo will erect in your way. Entrepreneurs should understand this upfront and not get flustered when market acceptance comes slowly. I've found that the best way to break barriers is enable people to test drive your innovation: download your software, take home your hardware, whatever it takes.
  6. “Let a hundred flowers blossom.” I stole this from Chairman Mao. Innovators need to be flexible about how people use their products. Avon created Skin So Soft to soften skin, but when parents used it as an insect repellant, Avon went with the flow. Apple thought it created a spreadsheet/database/wordprocessing computer; but, come to find out, customers used it as a desktop publishing machine. The lesson is: Don't be proud. Let a hundred flowers blossom.
  7. Think digital, act analog. Thinking digital means that companies should use all the digital tools at its disposal--computers, web sites, instruments, whatever--to create great products. But companies should act analog--that is, they must remember that the purpose of innovation is not cool products and cool technologies but happy people. Happy people is a decidedly analog goal.
  8. Never ask people to do what you wouldn't do. This is a great test for any company. Suppose a company invents the world's greatest mousetrap. It murders mice better than anything in the history of mankind--in fact, it's nuclear powered. The problem is that the customer needs a PhD to set it, it costs $500,000, and has to drop off the dead, radioactive mouse 500 miles away in the middle of the desert. No one at the company would jump through those hoops--it shouldn't expect customers to either.
  9. Don't let the bozos grind you down. The bozos will tell a company that what it's doing can't be done, shouldn't be done, and isn't necessary. Some bozos are clearly losers--they're the ones who are easy to ignore. The dangerous ones are rich, famous, and powerful--because they are so successful, innovators may think they are right. They're not right; they're just successful on the previous curve so they cannot comprehend, much less embrace, the next curve.

Written at: Marriott Hotel, San Francisco, California

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Comments

The Top Ten Lies Of Business Gurus!!!!

1. I'm successful because I'm brilliant. Never mind that I sold a money-losing piece of crap to a dot-com at the height of the internet madness. You should listen to me for my brilliant insights.

2. I'm not ‘successful’ because I happened to be in the right place at the right time. No sir re, that had nothing to do with my success.

3. If you follow my advice, you’ll be successful too! Just wait till the next irrational exuberant thing comes along.

4. I never “drank the punch” during the dot-com era. I always told everyone that the dot-com bubble was going to burst.

5. Just give me your money and I’ll show you how to raise more. Honest.

6. Oh, I know at least THREE companies that are doing what you are doing. If not, I’ll tell them your ideas so they can get started.

7. You don’t need a direct revenue model. Just aggregate eyeballs and you’ll find a way to make money.

8. I STRUGGLED to make myself a success. Never mind my wealthy parents and Ivy League education.

9. You have to have BALANCE in your life. That’s why I divorced my old wife and took up with a young hottie after I sold my company.

10. I so successful I don’t need to work. That’s why I fly all over the country charging business wannabes $1000 to attend my seminars.

Guy - Have not spoken with you since my Outbound Systems day back in 1991-1992. Have kept up with your books. Glad to see you now have a blog. If you have a chance, bop on over to www.egoventures.com for a look around.

Guy,

Could you please correct the font size to optimum levels ?

Earlier it was too small to read and now its too big for comfort.

I particularly like the Don't let the bozos grind you down "truth." I am constantly telling entrepreneurs that most people, (either consciously or subconsciously) want them NOT to try because failing to try will validate the naysayer's past decisions to do the same. It's called cognitive dissonance.

I love it! Story of my life. Here's a nice quote from Winston Churchill:

"Success is going from failure to failure without losing enthusiasm".

Amen!!!

"Every shock wave needs a trigger. A catalyst. And that catalyst is people: Engineers, creatives, listeners, curious Georges, artists, writers, mathematicians, designers, philosophers, anthropologists, product users, historians, poets and problem-solvers. These are the people who will turn a chunk of metal into not only a work of art, but a product that will inspire awe and love and want.

These are the people who will help turn something as precarious as an interaction between a frustrated customer and a customer service rep. into three-minute of toll-free bliss.

These are the people who can make anything transcend its "sum-of-its-parts" banality into an extraordinary experience."

That's innovation at its best.

"Think about iPod. Think about the Starbucks cup of coffee. Think about the Palm V. Think about every iconic innovative breakthrough that has changed the way we live and work and travel and play. Every single one without fail startedwith a group of people from diverse backgrounds sitting in a room together to listen to each other talk about how to address a need.

This happens at the beginning of a product's design cycle, not at the end.

Anyone can do this. You could be an international corporation or a one-person company. It doesn't matter."

Two cool posts on innovation:

1) http://thebrandbuilder.blogspot.com/2005/10/innovation-starts-here.html

2) http://thebrandbuilder.blogspot.com/2005/09/ground-zero-brandbuilding.html

#10. Never Ever Surrender. When the 1st or 151st iteration doesn't quite take - step back and assess the need - if it's still valid step up and swing for the fences again!

""Jump to the next curve.....they should invent laser printing."

Won't work in all areas of business. In game business: you cannot jump to the latest technology wagon - or you end up having way too many customers without option to play. On the other hand - innovative design would hit the jackpot.

You have to appreciate when Chairman Mao’s quotes that once spread communism is now spreading capitalism.

I really appreciate that the purpose of innovation is not cool products and cool technologies but happy people. Happy people is a decidedly analog goal. Too bad most industries don’t get it…especially in my field of retail. It’s not about the products but rather the people and the outcome. Thanks.

Words to live by for a tech startup like mine. Thanks for sharing!

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