Should we be starting single sex Innovation Labs?

10 04 2012
Stephen Dubner of “Freaknomics” fame recently tackled an interesting aspect of innovation on the NPR show “Marketplace” . In the show he pointed to a patent gap – namely the gender gap in patent applications.

Apparently women are only responsible for 7.5% of all patents filed and Jenny Hunt, an economist at Rutgers University reckoned that closing that male to female patent gap in science and engineering could have a dramatic effect on the economy – raising it by up to 2.7% – a pretty sizeable gain.

There are multiple reasons for this gap existing – but one of the most interesting ones that were discussed was the relative attitude towards risk between the sexes. Specifically, men are bigger risk takers than women.

Why would this be important? Well, Innovation, after all, is a risky endeavor – with average new product failure rates still hovering at the 75% level, you have to be reasonably thick skinned and willing to “go big” occasionally in order to achieve noticeable results. You have to, in short, have a reasonable tolerance for taking on risk.

Allison Booth, a British economist, cooked up an experiment that looked at the male/female risk gap by measuring the relative risk in choices between various student groups of women and/or men. She found that women who were in single sex groups were exhibiting similar risk profiles to the men who were in single sex groups. However, the women who were in co-educational groups were making less risky choices. It seemed that women were competing more aggresively (by taking bigger chances to win) when they were up against other women – but would defer/dial it down when men were also in the group.

I guess this shouldn’t come as to much of a surprise as you only need to look at the school tables in the UK to see that single sex schools tend to dominate the top of the leaderboards – especially with regards to female education – but does this mean that maybe we should continue this segregation beyond the development years?

Potential legal issues aside, would we gain more from a segregated workforce? Should we start setting up single sex Innovation Labs to maximize the competitive elements that drive creativity? Would we double the amount of innovation happening in our companies by segregating staff into men/women-only divisions?

Sounds counterintuitive – but maybe it would work – what do you think?





Getting Inside the Game – The promise of Gamification in the Enterprise

15 03 2012

You’ve probably started hearing the terms “Gamification” or “Game Mechanics” in increasing frequency in your corporate hallways of late. This is especially so if I’ve been working with you, as Gamification theory and practice (not to be confused with the Economics based “Game Theory”) is quickly becoming a cornerstone of the next generation of highly engaging collaborative Innovation programs.

I probably get asked about Gamification (aka the application of Game Mechanics/Game Design to a particular system, process, or program) at least once a day now – Spigit has quite the reputation for incorporating Gaming Mechanics into its product design – and the Collaborative Innovation consulting practice I run at Spigit has now also pioneered the development a host of new techniques and methods to apply Game Design techniques into the successful design and execution of various types of challenges, communities and collaborative competitions with some quite astounding results.

Done properly, it’s probably one of the greatest tools in a Social Strategist’s arsenal – giving great insight into that hallowed (and much overused) word “Engagement”. Yet as a topic it’s rarely understood – and even more rarely applied – properly by most including those claiming to be in the field.

First and foremost, let’s tackle some of the misconceptions:

-       Gamification is NOT the same as Social Gaming.  Whilst popular games like Farmville, Cityville, etc incorporate gaming techniques and could in themselves be the end result of the Gamification process – Gamification itself is a much bigger subject matter.

-       Gamification IS a Social process

-       Gamification IS a design methodology – it’s about how you incorporate Game Mechanics into a system to make it more ENGAGING .

-       Gamification is NOT about specific technology features and functions. Buying Bunchball, Badgeville, or any of a host of new companies cashing in on the Gamification trend and blindly incorporating their software into your website does not make you a Gamification King.

The key to comprehending why Gamification is so important to businesses in the future – is understanding that that there is something incredibly and intrinsically addictive about a well-designed game that engages us as humans at the very core of our beings.

At some point in our lives, we’ve all been deeply engrossed in board games, video games, or what have you – looked up at the clock, seen it was 1AM and uttered the words “Crap, how did that happen?”

A good game not only engages us, but it physically and emotionally satisfies a part of us.  Left alone we will create games from whatever we have around us (“I spy with my little eye…”).. We actively WANT to, and some might even say need to, play games.

Given options, we will choose to spend time playing games above all other activities We will even PAY to play a good game – and we have whole cities designed to cater to our desire to play games!

What if we could capture the mechanics that make a good game so addictive to us, so engaging, and bring those into a business system that actively creates value for the company? THAT’s the real promise of Gamification.

Games come in many forms though – some very obvious (Monopoly, Blackjack, World of Warcraft. etc) , and others not so (political games, dating games, etc).

In fact, if you think about it – we are actually surrounded by games all around us everyday, although most of the time we don’t necessarily perceive or think of them as being games.

For example – take your morning commute – you get up and leave the house with the aim of getting to work on time.  There’s a path to follow, and there are choices along that path:

–      Do you decide to drive or to take the train?

–      If you drive, which route do you take?

–      Do you go the direct route over the hill that can be slower but has less traffic or do you go around on the main road that can be quicker but is more prone to traffic jams?

–      How fast do you drive – do you increase your speed when you hit the highway to make up for your lateness but also increase the risk of getting a ticket that would make you even later? (and poorer financially..)

–      And so on…

You make decisions and take actions to beat your fellow competitors (other commuters) to get to your ultimate goal – getting to work on time. It is, in essence, a game.

Of course, we don’t associate it as a game because it’s not structured and presented to us as a game – but essentially it has the same structure: A goal, a story, a reason to act, and multiple actions and decisions to get to that goal which ultimately delivers you a reward – in the example above, not getting told off by your boss for being late to work.

Almost everything else you do during your day could also be reframed as a game:

–      Lunchtime: When do you leave your desk to avoid the lunchtime rush/get the best grub?

–      Airport Security: Which queue do you join to get through as fast as possible and not miss your plane

–      Travel – Whom do you fly with? Do you go with the most direct flight, or do you go with the one you fly the most in case you can pull off an elusive upgrade?

–      Sales Reporting: What percentage certainty do you report that elusive deal you’ve been working on in your CRM system? Do you raise your boss’s expectation and hope not to disappoint? Or do you low-ball it and aim to surprise?

–      At Work: Which order do you attack your workload to be the most efficient with the least amount of pain (and most acclaim from your peers and bosses!)

–      At Home: How do you get your child to eat the brussel sprouts that they hate?  Cue the airplane game!

Consider that all of these activities you choose to engage in during your day have the same elements as a good game:

-       They have a clear start and end to it

-       There’s a pay-off for “playing” it well and achieving a “win”

-       There’s a clear storyline/reason to play that’s clearly communicated

-       A good activity isn’t repetitive

-       A good activity doesn’t throw complexity at you all at once, but rather in stages with mini-pay-offs to keep you interested and wanting to “throw the dice” until you finish.

And so on.

We play these games, and we “game” these games (incidentally – people “game” every game out there – given the option of two routes with an equal reward, we will always pick the shortest/easiest route to the prize – maximizing the prize wherever possible), and ultimately we win/lose the games we play.

The problem (or opportunity) with most business systems though, is that, as we don’t envision them as games, we don’t design them as games. That doesn’t make them any less of a game; it just makes them “crappy” games that no one wants to play!  

They’re “crappy” for the participants because they’re tedious and unrewarding to play/participate. They’re “crappy” for the business because participation is low or non-existent, compliance to the task at hand is minimal, and because ultimately the system is being gamed for the participants’ benefit and not the company’s benefit.

Instead by building and designing business systems with the mindset that we’re really creating a game, with a specific outcome, and incorporating the same rules and mechanics that naturally engage us in games – we actually end up building a system that is a win-win for all.

The net effect? Imagine creating systems that are so addictive that people will gladly spend their own free time to participate in something that is adding value to the company – and enjoying the challenges involved in doing so.

That they will even give up their own time on the weekends to submit ideas into your innovation system.

Sound impossible? It’s not – we’ve been able to achieve this effect at companies like Citi, Cisco and Houghton Mifflin Harcourt as we applied these new design techniques to the practice of Collaborative Innovation at each of them. More on this to come…





The Key Ingredient to visionary Open Innovation

14 08 2011

“Go forth and Innovate” – whilst I have yet to hear those immortal words actually uttered by any senior executive (at least not without tongue-in-cheek) – it is the virtual call to arms that many Innovation execs receive nowadays.

The resulting rush to show action prior to thinking that action through is probably one of the greatest contributors to corporate malaise around the expectations for a fledgling innovation program.

Nowhere is this more obvious than in corporate innovation programs where, in a bid to emulate their own version of a P&G-style “Connect & Develop* program, Innovation exes rush in to embrace ideas from the outside without stopping to think about whether or not the audience they’re asking is actually capable of the answers they’re looking for…

For example – let’s look at what’s probably the most obvious place for a company to start  – existing customers.  Even better – let’s choose our long term customers with which we already have good relationships – surely that will lead to some synergistic big ideas that will result in big sales down the line…it sounds like a good idea, no? And it continues to sound like a good idea until you realize that, whilst prolific with ideas for your company, the vast majority of ideas you get from your customers seem to always end up being iterations on your existing product lines… new colors, new flavors, new add-ons – but primarily minor changes – why aren’t they delivering on those big ideas I was looking for?….

The Answer: Because they lack one vital Innovation ingredient… Unhappiness.

In order to be able to innovate – in order to even want to innovate – you have to, be default, be in a motivated state to look at/consider new options and solutions – you have to be unhappy with the current status quo.

After all, your customers are already buying from you – you’ve already satisfied the “job they’re trying to get done” (to borrow a Clayton Christensen-ism) – so why would they even consider any radical alternatives?

And the bigger the ideas you’re looking for – the higher up the “unhappiness-scale” you’ve got to go up to stand a chance of finding it.

So let’s go up that unhappiness scale – next up are groups known as “lead users”. Lead users (not to be confused with Lead/Early adopters) are people who are only buying your product because it’s the closest darn thing to what they really wished you’d made.

They use and adapt and do all sorts of crazy things to your product in order to satisfy their real need.  Get them to open up those real needs to you, and you unlock the potential to find the next generations of your current product lines as you uncover tangential markets, brand extensions, and new applications of existing/modified product sets that satisfy new niches and customer segments.

Want an example of how powerful this can be?  I had one former client of mine go out to all his customer facing staff to ask for “all the crazy, wacky, and abusive things that our clients are using our products for, that we never envisioned them being used for”.  After searching far and wide, they found a small company in New England that was using a product they made to waterproof new housing, to waterproof boats instead. Why? Because it was a quicker, easier, and simpler method than the traditional way they’d done it before.  It took my client all of a few months to repackage the existing product to target the boating community and create an entirely new market for themselves that added an additional $7 Million in its debut year – not too bad, eh?

What if we want to go for the really big ideas? Well then we have to go to the most unhappy person of all – the people who aren’t buying your product at all because the product you make don’t even come close to what they are looking for. Listen to these people and you might just find the future of your company.

These last two groups represent the “fringe” of the populations available to you – the edges of where your company is, and where it could be. Engage those and bring them in to reinvent your core business, and you’ll find the way to ensure your company lasts the next 5 years.

In the meantime, keep in mind this mantra I give to my clients:

Customers give you Iterations…

Lead users give you Generations…

Non-customers give you the Future…

As always, I welcome your thoughts and comments below!





The Next Evolution of Open Innovation – What’s Next?

20 04 2011


This last week I was at the Marcus Evans Open Innovation Conference giving a presentation on “The Next Evolution of Openness” – Getting back on the speaking circuit finally gave me a little thinking time away from building a rapidly growing consulting practice at my new company Spigit and I wanted to share with you some of the key points of that talk over the next few blog posts.

Things change quickly in the Innovation world – and as I was writing the title of the presentation I was struggling whether the word “evolution” was quite the right one – maybe “Revolution” would’ve been a better word to use in the circumstances.

There’s supposed to be an ancient Chinese curse that goes along the lines of “May you live in interesting times” – and I don’t think that times get any more interesting than the business environment we currently find ourselves in.

We live in a time of massive change – both in terms of the size of changes we’re asked to take on, and the frequency with which change now happens.

The recent financial depression has had profound consequences on the businesses that survived. We’ve come out the other end to a world that demands greater accountability, greater participation, and greater transparency than ever before. We’re in the middle of a social revolution where the strength is slowly moving away from corporations and moving into to the hands of the consumer. Where power is moving from the Core of a company to its “Edges”.

As a result, businesses are waking up (rudely in some cases) to a new way of working, a new way of organizing, and a new brand of leadership. Innovation, as a corporate discipline is no different.

Indeed, if we look at the history of Innovation over the years, there are definite trends to be seen:

We started with the lone inventor, working alone to build an advantage that no one else could copy.

If one bright person could achieve an advantage, it didn’t take rocket science to realize that maybe we could put several bright people in the same room and multiply the effect – so we built R&D labs to take advantage of that.

R&D labs worked well, so we started wondering if anyone else in the company had useful input too – so we invented the suggestion box as a corporate tool.

The advent of technology brought with it the ability to ask a broader range of employees than ever before – reaching out across business silos and traditional geographic boundaries to grab ideas wherever they lay. We started putting effective processes around the use of the technology and Idea Management came about.

Innovation Management came along when we then figured out that ideas without execution were worthless – so we changed to focus on an end to end process that drove the ideas we were collecting all the way through a formal pipeline to execution and thus started creating an engine for creating new value for corporations.

Collaborative Innovation brought in the concept that people could add value even if they didn’t have an idea themselves. We started using leading edge social technologies to allow people to work together on building ideas together and driving new levels of value creation.

Open Innovation brought in the idea that the best ideas didn’t necessarily (and probably didn’t) reside solely within the corporate four walls.  So we started to look at sourcing ideas from anywhere and everywhere outside of our  own organizations.

We then reevaluated the innovation process – realizing what was really at the heart of our activities was a robust problem solving process and so collaborative problem solving became the big focus.

When we started considering Innovation as a problem solving process we also then realized that the applicability of what we were doing became broader – we could now push a flow of new ideas across the entire enterprise, building a cultural shift of not just reacting to, but actively driving massive continuous change at all times – We created Enterprise-wide Social Innovation.

So, what’s the next step I hear you ask? For me – it’s realizing that maybe even problems aren’t the right focus – that maybe, just maybe, we need to embrace the larger social revolution and realize that we’re on the brink of a new future for business as a whole.

That future sees companies using Innovation as the gateway drug on their route to incorporating broad level social feedback and input across every aspect of the enterprise.

That future sees us bringing in and co-creating with the masses to create the ultimate engagement model with would-be customers – that of a conspirator or co-owner in the very business they helped to create.

Maybe then, it’s not Innovation that should be Open – but rather Business as a whole.

If  we just follow the trends from the timeline above, we see that there has always been value in building our companies outwards. That there has always been value in continuously increasing the number of people in “the room”, in increasing the transparency of the organization, in pulling the outside in, and ultimately in the engaging, at scale, the broader world around us.

That the leaders amongst us are those who are continuously exploring the boundaries of their companies and learning how to embrace the fringes and edges to drive value at the core.  

Could this be the Open Business revolution at last?

I look forward to reading your thoughts :)





2011 – The Year of The Social Enterprise?

4 01 2011


A New Year brings with it many opportunities – and we generally take advantage of the new start every year gives us to make numerous promises and resolutions for change in our life.

For me, Jan 1st 2011 saw me make promises to write more often, get fitter, achieve great things for my clients, and generally embrace what is sure to be a year of great changes for me.

However, another opportunity afforded by the New Year is the ability to look like a right royal fool, or alternatively a prescient visionary genius, by looking to the year ahead to predict what it will bring.

My track record at these predictions is not necessarily to be envied – although I don’t seem to usually be “completely wrong”, my timing seems to be somewhat off.

Had the predictions of my youth come true, we’d all be living in a Star-Trek like world of spaceships, teleportation, and holographic entertainment systems in every home. Heck, even more recent predictions of a global ubiquitous Internet connection seem to be off by several years at least.

Nevertheless, it’s fun to look to the future, and I’d like to think that with age comes a certain realism as to what’s possible in a year – so here goes this year’s effort.

I think 2011 is going to be an especially exciting year – especially if the one big prediction I have for this coming year ends up coming true – that we’re about to embark on a new era of unprecedented collaboration and social interaction, that we’re doing that with a renewed sense of discipline, all-inclusion, and transparency, that we are, in short – on the cusp of seeing the world’s first fully social business.

Companies embracing social is nothing new admittedly – indeed my own work has centered on helping companies to use social technologies to drive corporate strategies for over 15 years now.  So what’s different now?

For starters, I think this year sees companies finally take it seriously – as a corporate competence to be achieved and maintained, rather than a faddish concept to be played with in any of its prior incarnations (knowledge management, collaboration, social media, etc).  I see companies increasingly throwing away the intangible mantle of “social media” programs focused on improved interactions with the consumer – and instead looking for ways to integrate social technologies to produce some very tangibly sized profitable gains. Nothing moves a company to embrace a new way of working more than big profits.

I also think that Social Technology companies themselves have matured more – taking ownership of the need to provide companies with a tangible route to those big gains. The increasing differentiation within the current software market is proof of that as vendors realize that companies don’t (and can’t) buy general “Collaboration” or “Social” tools – because they simply can’t achieve anything (let alone everything) with them.  General collaboration platforms like Sharepoint and Jive will continue to exist – but will continue to become secondary to the applications, (like Spigit, Yammer and others), that are developed to run on top of them and will drive the real value of social tools to the organization.

2011 will see Innovation continue to be the “Gateway Drug” to Social Tool adoption in the enterprise – providing an easy route for large companies to value and monetize the global interaction of the “social populations” (employees, customers, vendors, strategic partners, shareholders, and more) at their disposal.

Once that value is established – I see companies starting to effectively inject “social input” into increasingly strategic parts of their business. We’re already starting to see the first variants of this emerging in Finance (eg Microfinancing), Manufacturing and Design (eg Crowdsourcing), HR (eg Employee Engagement initiatives), and even Management generally (eg Collaborative Decision Making).

All this leads me back to my initial prediction – the emergence of the first true Social Enterprise. That is, a company that has social input strategically injected into EVERY part of their organization. Where every business process includes elements of mass social interaction between people inside and/or outside the traditional company walls. A fully open business that is able to leverage a global knowledge resources pool in multiple ways to achieve its strategic goals.

Is that possible in 2011? It’s a bit of a stretch I admit – and more likely to happen at the start-up level rather than a large global enterprise at this stage – but I believe that even that’s coming in the longer run. In the words of Hamel and late C K Prahalad – companies will eventually be forced to redefine what their true “core competencies” are – and then outsource the rest. Although instead of outsourcing it to an emerging global economy because labor is cheaper, they’ll be outsourcing it to a global social population because the work, the solutions, and the results will simply be better than they can achieve on their own.

The winners in the next generation of businesses won’t be the companies that can come up with and produce the next winning product – but will be instead the companies that can rally the world around to do it for them.

That’s my big bet for 2011 – what’s yours?





Innovation – do you WANT to win? Well, do you?

13 10 2010


If you’ve never been to the annual Business Innovation Factory conference (#BIF6 on twitter), it’s really quite a trip. More of a mini-TED conference than anything specifically innovation related – it’s all about enabling people to share stories about things they’ve achieved, thought of, experienced, and so on.  The end result is that you don’t necessarily walk away with a series of bullet point “To-Do”’s like you might at other conferences – but you do end up with a simmering pot of interesting thoughts and ideas just waiting to boil over the top.

This year, two speakers said things that stuck in my head and kept me thinking. Such is the way my mind works that unfortunately I can no longer remember who they were – but I’m sure someone will eventually remind me in the comments below this post :)

The first of these insights was an observation that, if you have two equally matched sports teams, and one team’s members actively want to win, whilst the other team isn’t bothered – then chances are, the team that wants to win, will do so. Sounds obvious really, but it brings an interesting question to mind when you bring that concept into the business world – which, at the heart of it, has similar competitive dynamics.

If you have two equally matched companies competing against each other, the company that collectively wants to win more – will probably do so. “Desire to Win” is a competitive differentiator in effect.

With that in mind, however – how many of us actively try to instill that desire to win into our employees? How many companies actively engage in “Win Management”? You could even say that what really differentiates a successful innovator/entrepreneur from normal people is that never-ending drive to win “the game” of business.

This is even more amplified in the Innovation world where the risk of failure is ever present and embraced as a part of everyday life. It is a daily competition to beat the odds and win the game of innovation.

Pair that thought up now with another insight from that same conference. Apparently, at any one point in most organizations, only 20% of the staff are actively engaged and enjoying the job they’re doing.  I would personally argue that that number seems a little high to me – and is probably rotating too – that is, we’re not necessarily talking about the same 20% year round, as people naturally go through cycles of loving/hating/being indifferent to their work.

I would also argue that one of the reasons why people don’t get engaged in their jobs, is because their jobs (ie their companies) don’t engage them. They feel like they have no say, no ability to make an impact, no reason to want to win….

So it stands to reason that if a company really wants to win at Innovation they need to both instill a competitive desire to win in their organizations, and to tap into and maintain that desire by actively engaging their population in strategic innovation decisions.

And by “Engagement” I don’t mean just listening to your employees – I mean actually “Doing” something with their input. Business, and especially Innovation – is a team sport – and no one wants to be relegated to being the guy on the subs bench that never gets on the field.

So now you know what you have to do, you have to ask yourself – Do you want to win at Innovation? Well, do you?…







Follow

Get every new post delivered to your Inbox.

Join 4,155 other followers