innovation playground Idris Mootee

Have You Noticed The Emerging of Professional Visual Anthropology? Now You Can Be An Anthropologist Even If You Can't Read And Write!

I carry my camera (Leica) for 2 reasons. One is to capture pictures that remind me of what I've experienced or just something for inspiration and two is to share with others what I am doing. A picture can often tell a story better than a thousand words. Photography can capture the pure spirit and beauty of life, to tell a story to tangiblize humanity or to create a real (or fake) personality and to communicate an idea. I called it the practice of visual anthropology. Does it mean I am now an anthropologist?

Photographers such as Henri Cartier-Bresson, Robert Capa, Dorothea Lange or Steve McCurry have made their names by using photography to help us see the lives of so many that we may never be exposed to. They are more than artistic expressions, they are creating social meanings and codifying our cultures through the use of photos. As Cartier-Bresson said, “Pictures, regardless of how they are created and recreated, are intended to be looked at. This brings to the forefront not the technology of imaging, which of course is important, but rather what we might call the eyenology (seeing).”

There are many known social scientists and anthropologists who focus on the social meaning of photography including Elizabeth Edwards, Pierre Bourdieu and Jay Ruby to name a few. This is still an emerging field but will continue to add a creative layer of analysis to many existing methodologies. Visual anthropology and ethnographic photography do not currently have a well-articulated theory or method but is an explicit theory even needed? In the beginning, the primary function of photography in anthropology was as an aide-de-memoire, like written field notes, photography served to help reconstitute events or aid in writing. Now we're all using Instagram.

This includes all aspects of our culture that are visible, from nonverbal communication, objects, light, texture, ritual, ceremonial performance, expressions and movement. The study of photography has been dominated and also limited by art historians.

The notion that visual anthropology is a means of scientific research may not be commonly accepted, the camera becomes the main visual anthropological tool. It helps many viewers to see things they would not normally be exposed to; it captures the scene around dialogue; and it depicts the mood and state of people in their natural context. The photos become “ethno displays” capturing moments of observation. There has always been a natural relationship between anthropology and photography - called it "anthrophotography" and I just invented a new term.

As Henri Cartier-Bresson said, “In photography, the smallest thing can become a big subject, an insignificant human detail can become a leitmotif. We see and we make seen as a witness to the world around us; the event, in its natural activity, generates an organic rhythm of forms.”

Visual anthropology can also be used in persona development, adding a tangible element to the identity of a customer. As the camera emulates the anthropological principles of participant observation it makes all things real. Events unfolding in front of the camera, reveal insights by showing – not telling – a specific truth about specific people. An important discipline to master as a photographer is not interfering with the subject; being there by trying not to be there.

When faced with a camera, a photographer will often get one of two very distinct reactions. One is interaction. The camera becomes the point of conversation and people respond by reacting – they come up to you and sometimes even pose for you. The other reaction, is people suddenly become aware of the camera, change their behavior or even retreat away from the interaction.

A point of debate is whether the anthropologist can separate their point of view from that of the camera. Can you capture and analyze? Can both perspectives exist during fieldwork? Each perspective brings different things to the forefront, and it is the combination of these perspectives that give shape to visual anthropology. With a camera, both the expected as well as the unexpected are captured. And it is with the unexpected that analysis becomes interesting. The rapid proliferation of visual media coupled with our already rich visual cultures expands the opportunity for visual anthropology immensely. As culture evolves in tandem with the technology of capturing culture, the field becomes an even richer place of study. Just look around at those who are taking photos of themselves using their iPhone.

Article first appeared in MISC Magazine speicial 'Insight' Issue.

Five Critical Questions About Organization Culture That People Avoid Asking.

There is a piece on HBR Blog on the topic of organization culture “Culture Takes Over When the CEO Leaves the Room” by Frances Frei and Anne Morriss (both HBS professors). It is a good piece worth reading and here's an summary of their ideas:

Excellence = design x culture. Your job as a leader is to get both right. You must build a winning structure for your organization and then foster the often unspoken rules and values that will bring that structure to life.

But if we may be blunt for a second, what the hell is culture? And how exactly do you get any better at it? In short, culture guides discretionary behavior and it picks up where the employee handbook leaves off.

Culture tells us how to respond to an unprecedented service request. It tells us whether to risk telling our bosses about our new ideas, and whether to surface or hide problems. Employees make hundreds of decisions on their own every day, and culture is our guide. Culture tells us what to do when the CEO isn't in the room, which is of course most of the time.

My favorite line is “Culture tells us what to do when the CEO isn't in the room.” I have been studying the ‘creation and nurturing” of organization culture for decades looking for practices and patterns among organizations with highly effective and sustainable cultures. Especially those that were not built on incentives such as stock options and those that were transnational.

It is easy to just look at those service intensive companies (Four Seasons, Starbucks, Zappos, Nordstrom and Southwest etc.) where there is close relationships between service and culture, but I am more interested in looking at culture and their relationships with strategy, structure, purpose and their implications on business performance and innovation effectiveness. Some of the questions I have been exploring include:

• The first question is does the CEO or the executive management knows what kind of culture they’re trying to build or what are the conditions required for those culture to flourish and key concepts to build from? Or it is simply unintended consequences of the CEO management style or something inherited from previous management? Do you know what you're building towards?
• The second question is can a company articulate its corporate culture in a way that is both tangible and explicit. A company publishes an annual report about its financies, should they publish a book about the company culture? A company’s prevailing values, mental models, assumptions, attitudes and beliefs all make up the soft, invisible stuff of culture that crate an environment of trust and balance. It determine its outlook—what it finds meaningful and important. Can you capture these stories and communicate them in a tangible way outside a Power Point? And what are the best practices to do this?
• The third question is when company is attempting a culture transformation; do they need a vision of what they want to become? Is there a genuine need to diagnose their present culture so that they can define the current state and the future state? And if the gap is too big, how do they know if the transformation is too drastic and simply not achievable?
• The fourth question is when organization culture gives people a sense of self and identity and determines, rituals, beliefs, style, meanings, values, norms and language, the way in which ‘things are done that way around here’, who should own it or is it possible for any function to own?
• The fifth question is around maintainence. An empowering executive management team can better assess the current status of an organization with an eye to shaping /modifying / eliminating the parts that are dysfunctional or ineffectivel, then replacing them with qualities that will improve the speed of decision making, productivity, and employee engagement. Corporate culture needs a maintainence plan. Do you have one?

Organization culture is not a vision, mission or management system. It is the strategy that guides how a company makes decisions disregard of what industry they compete in or where they play along the value chain and how decisions are made when the CEO is not around. And in particular today’s fast pace turbulent business conditions, a strong corporate culture can provide the strategic agility and empowerment needed to reduce the recovery time from any unavoidable setbacks or disruption.

Organizaion culture is the glue that holds a company today, even when lacking a robust business strategy. Far too many CEOs and executive leadership fail to make the connection between a “hard” strategy and a “soft” strategy and not putting enough effort to make creating, building, and nurturing a winning corporate culture the heart of the company strategy.

“To be an enduring, great company, you have to build a mechanism for preventing or solving problems that will long outlast any one individual leader.”           

                                                                - Howard Schultz

"We needed to integrate as a team inside the company so that we could integrate for the customers on their premises.” 

                                                                - Louis V. Gerstner, Jr.

The New Battlefield Between iPhone, BlackBerry and Android Smartphone: The Keypad.

Apple iPhone has officially become the “defender” instead of the “attacker”. The battlefront so far has been on the screen and apps and now the battlefield is switching back to the keyboard. There are two camps: physical keyboard and virtual keyboard. I definitely belong to the group that I needed a real keyboard and therefore I use Blackberry. And there are those who can type at lightening speed on iPhone virtual keyboard.

Since last week, there were rumors that the next generation of Blackberry will come without a physical keyboard (which Blackberry CEO Heins reassured that RIM is not getting rid of its tried-and-true physical keyboard) and this is no easy decision.

One exciting new feature for the BlackBerry 10 is the redesigned user interface. The clean design features "cascades," which let users flip through apps with a simple swipe gesture, replacing a back key or physical button. It will also feature an intelligent virtual keyboard that takes touch-screen keypads to another level. It learns the words that you often use, your typing style and compensates for sloppy typing (I admit I am one of those sloppy typers). If they solve this problem, another good reason for me to stick with Blackberry. I currently have three BlackBerry and a Playbook.

There were reports that now Apple is considering offering a real keyboard for the iPhone 5. While this is highly unlikely, it will be a smart move for them to change the game again if they can completely rethink the design and engineering of a physical keyboard. The next competitive front will not be the camera, screen size or processor speed, it will be battle of the keyboard.

I speculate that RIM is betting (and committed) on winning the keyboard battle because they know it well, typing for BlackBerry users is everything and this is the last defense.  And now RIM is properly equipped with the smarter, faster QNX platform.

Let the battle begins…..and here's a few free advice:

• BlackBerry should seriously push the design front and explore the BlackBerry DNA and go against Apple’s simple design and opt for more sophisticated European asthetic.
• BlackBerry should turn up the keypad battle and bring in new function and keys to allow new document management capabilities. 
• BlackBerry should stop engineering creeps and hold back innovation on those features to reduce distractions.
• BlackBerry should drop the Apps race and give that up completely. Don't fight a battle that you cannot win.
• BlackBerry should turn BBM into an open software and get mass adoption including all Android phones.
• Blackberry should explore innovative features on “identity” management. I think there are lots of rooms to innovate here.
• BlackBerry should innovate around “security” features (not data security) but real security and design service around it.
• BlackBerry should leverage the 200+ million cars are on the road using RIM's QNX operating system and create the most sophisticated integrated features. Most BlackBerry users like me take calls in the car for hours everyday.

I can go on and on for hours and give BlackBerry another 100 ideas to compete for the future. The big strategy is to ignore “Apple”. I mean completely ignore Apple.

The Hardest Part Of Any Innovation Process Is Sensemaking. And Sensemaking Is Closely Linked To Insights.

The hardest part of any innovation process is where data and insights come together and trying to make sesen of them. Sensemaking is about using visual mappings and narrative techniques to mine the non-quantitative data. This except is taken from a piece in the current issue of M/I/S/C magazine on Insights and Sensemaking co-written by me and Richard Thomas.

Customer inishgts can be inspiring but insights are only useful when they prompt action and self-reflection. Ideally, the best insights inspire even more insights and them more insights, but vast amounts of insights or the lack of context gives way to a different difficulty – the loss of both inherit and intended meaning leaves insights appearing senseless. For this reason sensemaking and insights are closely related. These pictures are from our M/I/S/C Insight Issue launc party. This is a thick issue and flying off the selves fast.

Sensemaking helps to illustrate unthought-of rules-of-order and insights are the direct experience of these perceived rules. Often they are under pressure and cue toward the yet-to-be but insights, by nature, are descriptive and reflective – retrospective of lived experiences. Insights are the past. They have been separated from life. To exist as unpredictable patterns they may or may not fully characterize the ‘real world’ or persist as perceived. The list of problems and challenges organizations face in managing and applying relevant consumer insights continue to grow. Here are a few:

Insight Speed & Complexity: Organizations believe they are working from a complex abundance of insights at an increasing rate – that they are diverse, independent and conflicting – but at times their insights are not insights at all. The pressure to categorize, prioritize and validate dominates the conversation as opposed to getting at the heart of the matter. How does ‘what is going on,’ effect what you desire to be?

Old Insights: Organizations often work form the same cues, and the same insights from the same reports. Managers facing time restraints carry over insights from project to project and create a self-reinforcing false reality and homogenous actionable intelligence at the organizational level, and a lameness that is visible from the shelf.

Biased Insights: Often projects, products and categories come equipped with bias toward the past and dominant insights that reinforce the known and the safe. They are often out of context, separated from their original time, expired but treated anew.

Insight Translation and Application: Drawing value from out of scope, irrelevant or intangible ‘inactionable’ insights is resource heavy. If they do not fit with the current mental model of the market or consumer, and they are cast aside.

Navigating Misinformation: Mistaking repetition and self-similarity as truth or validation. Aging Insights have resulted in a loss of their meaning – and relevancy over time.

Insight Disbelief and Disregard: The insights and processes are becoming contradictory, trust and belief is bleeding out. The inaccuracy of the processes in the real world occupies our emotional intelligence when it should be ‘feeling opportunity’ – sensing valuable cues for action. People want insights to be singular in their validity but as a reflection of the real world, insights could and should complicate and contradict each other to accurately describe reality and texture.

These problems are symptomatic of more than the solutions they seek. The imperative to describe and validate the past, present and future has engaged tension between hesitations and over eagerness about change, insecurity and confusion associated with ambiguity. These problems stem from an over objectification of ‘the insight’ where we wish to be accurate. Insights have become ‘processed’ from perspectives of existing evaluation techniques to control, predict and guide the outcomes of their application in order to ‘de-risk’.

Overly fetishized instrumentation, metrics and measures have become the source of confidence in decision-making. It is hard to put the "sense" back into our everday managerial settings increase the signal-to-noise ration.

Sensemaking is where we sense of complexity and masstive conflicting information is being sorted through and relationships are mapped out and the emerging themes and weak signals are identified and clarified. I have been training senior managers and executives of applied sensemaking in strategy, marketing, product development, operations and technology planning. It is the most important skill managers need to master today.

Strategic Innovation And The Quest To Reinvent Management.

I spoke at a number of conferences the last few weeks on the same topic of Strategic Innovation in the Age of Reinvention. Reinvention is the word as every individual, practicing professional, multi-nationals, non-profits, education institution and government ought to be thinking about “reinvention”. We desperately need to “totally reinvent ourselves” in order to transform our economy, organizations, politics and societies.

Corporations adopted strategies 20 years back to outsource their production and resulted in loss of ability to innovate and compete. Many corporations cannot even define their core and what they are really good it today, their perceived competitive advantage was merely channel assess and a warehouse of intellectual property and patent documents.

Business leaders and governments are also experiencing a profound crisis of trust and legitimacy and all these factors have triggered a loss of confidence in traditional ways of doing things. The new world of reinvented strategic management requires applied design thinking across all management functional disciplines.

Today the very core of many management theories are being questioned and “management” is close to a point of failure. Leaders are looking to find something new to grasp onto in order to make sense of what’s going on and are looking to organize for a future of unprecedented uncertainties. Companies that fail to make the transition and missing industry breakpoints will be forced to play catch-up or risk being irrelevant or extinction.

One of the problems is we are still training our managers (MBAs) based on theories developed in post-Wold War II which was adequate when there were very little competition and technology was not a key drivers of competitive advantage. The M-form organization design is functionally oriented and the idea is every manager should manage a piece of the business as if optimizing each function means optimizing the whole. They are specialists and as as a result everyone is sub-optimizing the whole. Resulting in turf battles, lack of collaboration and unhealthy internal competition that causes satisfactory underperformance.

The strategic process occurring when the organization already realizes that it is facing an immdiate crisis, usually leads to strategic plans in the way of drastic cost reducing changes - closing of plants, cutting down of manpower, cancellation of investment plans or a change in their direction. These actions can only help them temporary. These are no changes in the present cognitive frame of the organization and these efforts may only enhance the sliding of the organization toward its doom.

The new world of reinvented strategic management requires applied design thinking across all management functional disciplines. The very core of many management theories are being questioned and “management” is close to a point of failure. Leaders are looking to find something new to grasp onto in order to make sense of what’s going on and how to organize for a future of unprecedented uncertainties. Companies that fail to make the transition and missing industry breakpoints will be forced to play catch-up or risk being irrelevant or extinction.

Design Thinking Is A Cognitive And Intellectual Process That Balances The Rational And Emotional. Not Included With Your MBA.

What is Design Thinking? Because of the word “design” and many automatically associate it with the craft of design or design as a profession. Actually it is less to do with “design” and more with “system”. There are many ways to define "design thinking" and this list is not exhaustive:

• A way to instill customer-centricity and empathy
• A framework for exploration and experimentation
• An approach to sense-making and problem solving
• A methodology to foster exploration and experimentation
• A design buzzword to tell you a designer can do more than design
• A management buzzword sold as the “next” strategic tool
• A marketing slogan or tag line
• A self-gratifying term for those who think they are creative

The term “design thinkers” implies that designers are craftsmen and not thinkers, which is NOT always the case. It is also a stretch for traditional industrial or brand/graphic design firms to claim to be able to use "design thinking" to solve complex strategic issues. These firms need to go through a radical transformation and close a big capability gap before they can even attempt to implement it for others.

Today, "design thinking" is frequently compared and contrasted to business. This is often an over simplification that forces us into predetermined roles along with their associated rules, conventions, behaviors and formal expectations. It Is important to recognize that "design thinking" is NOT exclusive to designers or unattainable to those in another discipline. Design thinking is natural and inherent in all of us who are smart and creative.

"Design thinking" is a cognitive and intellectual process that balances the rational and emotional – in effect combining left brain and right brain thinking. When applied, it harmonizes with other modes of thinking and closes knowledge and information gaps, creating order and refining meaning. Because "design thinking" is a dynamic, constructive process that is iterative in nature, developing ideas requires ongoing definition, redefinition, representation and assessment.

To achieve those tangible outcomes, you need to open the process to multiple participants and socialize the process and outcomes, visualization is a very critical part of the process, not an outcome. Even the Department of Defence recognizes the needs to train "design thinkers" that are capable of critical and creative thinking to plan operations in dynamic environments with fast-changing uncertainties in extremely complex conditions.

People who are capable of using "design thinking" to identify and develop different military response options within the context of a big strategy are crucial to successful military operations. The development of such skills requires a shift in their focus from the operational and tactical environments to the strategic environment. This is an extremely challenging undertaking given that many military officers spend the majority of their career starting at lower levels and their advancement depends upon how well they perform tactically. This is very much like managers in large organizations who were promoted based on their ability to execute tactically.

To develop senior commanding officers with "design thinking" capabilities require DOF to train them new skills including analysis as well as synthesis. "Design thinkers" possess the ability to think critically on a "system" level; break concepts into simpler parts and mapping out their relationship and system impact before rearranging the elements into a new whole; in other words, to produce something through imaginative skills and quick experiments. And yes, imagination is always needed.

10 Big Reasons Why Most Innovative Products / Services Fail? How Many Of Them Are Avoidable?

Why innovative new products fail? Because marketers believe they know the industry, the product market and the customer and their needs.  And after going through cycles of input gathering and any orginal innovative ideas were ultimately turned into something that a lot like their existing products with minor improvisation. Sounds familiar?

Too many firms “innovate” with very few real insight about the market, their customers, or customers’ aspirations, needs or wants. Rather than go out and understand what customers need and expect, they rely on anecdotal evidence and market research, or simply perform some "ethngographic" study performed by traditional marekting research companies. "ethnographic" field work performed withour an anthropologist is like goging to bungee jump without an instructor.  This is a ley failure point of the first order, like jogging on the rooftop blindly down a path that ends off the building.

What leads some innovative products and servies to succeed and others to fail? The answer to this question encompasses a number of different factors. In some cases, the product cannot deliver the promised performance, capability or attract sufficient interest.

Even if potential can be demonstrated early on, it may take a substantial amount of time to reach the projected adoption figures. Or the product’s innovative feature is being replicated by an existing product as an added function and there is no need for a stand alone new product. Or the economics of the new product is not attractive enough and cannot hit a critical mass. Insight into the minds of the early adopters can greatly reduce the risks of failure, which is generally due to one or more of the following reasons:

1. The innovative new products are not shown in the right user context thus creating a misunderstanding of the applications
2. The new technologies behind the innovative product are not linked to an exciting and worthwhile market opportunity or are too niche
3. The innovative new products are not positioned within any product category and also fail to open up a completely new category
4. There is insufficient knowledge and resources for marketers to drive consumer adoption
5. The core functions of the innovative new products cannot support themselves as stand alone products and only work as features.
6. The promised performance of the innovative new product does not materialize and does not provide enough customer value
7. The innovative new products were distributed through the wrong channel and compromise the value propositions
8. The innovative new products perform only a small function and can be included by others in other products as an additional feature thus diminishing the demand
9. The expectation of consumers adopting the new products is over estimated
10. Products are pushed to a skeptical customer group and fail to neutralize the perceived risks associated with the new product.

The innovative new products require an ecosystem of support which did not exist or were not built fast enough. Determining the suitability of market research for innovative new products or services is a challenge. Insights are not only needed in the early phase of ideas gathering, it is equally critical at the pilot stage. Many traditional market research methods are inherently more tactically focused (orientation on the customers of today) and lead to the development of small improvements in existing products and the big ideas eventually diluted. Read more of this in the next big INSIGHT issue of M/I/S/C available in bookstores in 28 countries.

Success For Organizations Comes From The Ability To Drive The Strategic Transformation At The Most Critical Points. “Business As Usual” Is A Very Dangerous Expression These Days.

What is "Strategic Transformation?" For some, it is the framework and process of altering the way in which an organisation does business using new technologies and processes. For others, it is the effort to develop a measured, goal-orientated response to marketplace events, or to improve performance by becoming more customer-centricity. But the most stratgic reason is the design and execution of an integrated, future-oriented, enterprise-wide program aimed at moving to an improved future and achieve stretch goals.

In the multitude of voices and noises, strategic and organizational paradoxes, CEOs and their executive team need to learn to navigate, transition and lead their organizations into a new future. Companies that failed to transform their organizations because they put too much emphasis on tools and technology and not enough on foresights, mental mindsets and leadership behaviors. Their leaders failed to develop the shared visions, values and beliefs that serve as foundation for dynamic culture and to engage all employees to co-create the new culture and to provide opportunities for them to initiate and participate in a shared destiny.

They need to start by identifying the specific beliefs and practices that need to be changed, challenge them to create new “experiences” that form those new belief. Convincing someone to change is hard and trying to convince and mobilize a large organization to change is an almost impossible task. But it is still possible. You just need to know where to start and where to push and pull.

There are many reasons why transformation efforts failed, because they over emphasis on the business processes redesign and not enough attention on the underlying human behavior. Strategic transformation is not just about helping people to rethink and reflect on the past and the present; it is also a way to prepare people for future unknowns.

The heart of any transformation lies in finding and embedding the “purpose” of the business and what they individually must do to accomplish that purpose, how to build trust, create networks and innovate. In the course of Idea Couture six years journey of helping large companies to transform, we determined that to create a new level of performance or jump back into a growth mode, a few things matter most. Most transformation will include building a culture of purposeful innovation and high performance. They consist of the following core components: mental mindsets, purpose and meanings, innovation practices, co-creation and measureable results.

When mental mindsets are anchored on a perspective of the future and the executives, board of directors, managers and employees are all aligned, they generate managerial actions that, in turn, lead to superior business performance. An exciting future state and here executives can leverage this to create the cultural momentum that is critical to ongoing innovation success. This cultural capital can help companies to deal with the ambiguities of technological disruptions and external market uncertainties and to direct their energy to adapt to fast changing competitive conditions. Facing increasing complexity applying a single-dimensional focus is absolutely fatal. And any attempt to emulate a successful strategy of your largest competitor is also fatal.

Transformation leaders understand the importance of using “strategic foresights” to help their companies maintain relevancy to the future and it is an ongoing attempt rather than a one-off exercise. Transformation leaders also understand the need to invest a disproportionate amount of time in bringing the organization together and function as one, not as departments or business units that ended-up sub-optimizing the business performance.

Executives in lower-performing organizations complain that they don't have time for the "soft stuff" and needed all the attention for a real business strategy. Yes we need a strategy on where and how we compete and what part of the value chain we can leverage and how to leverage from the economics of scale and scope. Executives are sometimes confused about managing conflicting strategies and they think they have to make difficult trade-offs. It is 100% possible to manage two conflicting strategies without keeping them apart. But to do so first required to develop a strong culture of trust and the ability to accommodate a new management mindset. That's why trasnformation is needed.

Successful Business Transformation Requires A New Logic To Handle Ambiguity And Change.

The future is scary and there are reasons for it. I have been giving a lot of keynotes lately to different professional organizations and senior executive roundtables and my keynote topic of strategic innovation and design thinking went beyond innovating to find growth and adapting to new economic, market, political and social order. I shared ideas on the future of economic development, the come-back of manufacturing, developing glocal innovation networks and creative or self-destruction of old establishments and the renewal and transformation of the modern enterprise.

There were never ending questions from the audiences on these topics. I can write a book on them, I guess I won’t have time. I hardly have time to get enough sleep. Everyone is looking for a theory to anchor. The future has never been so uncertain and almost any economic theories invented decades ago has become another working white paper again. The very old ideas of management and strategy taught in b-schools are so dated and when I look at the 800+ management books I have on my bookshelf, I am guessing 80% of them are completely irrelevant (50% were irrelevant when they were first written).

Some turn to other knowledge disciplines to look for sources of inspirations. The field of business strategy borrowed heavily from industrial economics and the filed of management sciences borrowed heavily on organizational psychology. What about "Strategic Foresights?” Where can we look for anchors and new inspirations? How about mathematics?

Fuzzy logic is the branch of mathematics that says that science isn't about absolute truth; it's just a heap of guesses at a reality that's much more complicated than that. The term “Fuzzy Logic” emerged in the development of the theory of fuzzy sets by Lotfi Zadeh (1965). A fuzzy subset A of a (crisp) set X is characterized by assigning to each element x of X the degree of membership of x in A (e.g., X is a group of people, A the fuzzy set of old people in X). Now if X is a set of propositions then its elements may be assigned their degree of truth, which may be “absolutely true,” “absolutely false” or some intermediate truth degree: a proposition may be more true than another proposition.

Professor Bart Kosko (Professor of Electrical Engineering in the University of Southern California's Viterbi School of Engineering and a Professor of Engineering and Law in USC's Gould School of Law) draws out some pretty interesting applications of that theory. He lost his faith and rediscovers it in science. The fuzzy future is part bog-standard libertarianism (with a side of Reaganomics), part extropian hooting-and-hollering, part small boy reveling in the Tolstoy and Clancy school of military exchange, and part Rube Goldberg engineering of unlikely theory, all bound up in hundred of pages of inscrutable equations in the footnotes.

My teaching on 'Design Thinking" goes beyond many simple (and shallow) creative tools. Forget those three wheels of design, technology or whatever. Those are complete BS. "Design thinking" is comfortable with change, it is disruptive and provocative by nature, and promotes new ways of looking at problems, often through new lenses. The strategic framing of complex and ambiguous issues requires thinking approaches that are free from organizational dogmas, codified limitations and old assumptions.

A large part of the design thinking process is to step out of roles conventions and free oneself from these dogmas and explore new frames of thought and approaches to problem solving. I am using "Design Thinking" to push us to rethink everything from scratch, including the tools of logic itself. Most people believe creativity means there is no logic. But what is creativity anyway? Or what is design? We need to look at the world or our business or social challenges with a fuzzy prism. It is like watching 3D movies without the 3D glasses. You can never make sense of the present and the future by using conventional lenses and logic.

In a world of full of chaos, unpredictability and fuzziness we need to look at the world through a fuzzy prism. Here is what Dr. Bart Kosco has to say, "How do you upload yourself onto a chip?" The fuzziest fact of all. The problem with current schemes in theory is a binary shock, when all of a sudden you die in meat, and wake up in chip. So how do you do it consciously? We could cut out that little chunk of your brain and replace it with an equally functioning chip, maybe a more powerful chip. We could keep doing it, while you're wide-awake. So in the end, you've completely transferred to a network of chips, and your brain is a bunch of sodium chunks in a jar of formaldehyde.

For the modern enterprise to evolve, survive and even prosper in the future, any change and transformation effort cannot just be putting on bandages. There is no one single future state to map against current state. There could be a range of different strategic futures and companies need to be ready for all of those. It takes a very different kind of transformation process when the future state is unknown.

Apple's Biggest Challenge Is What To Do With $100 Billion. Just Write A Check And Buy Sony Before They Further Destroy More Value.

Apple's current biggest problem is not the next iPhone. It is the 100 billion dollar problem. Microsoft had been criticized for years for having too much cash and not putting them to use. They eventually started paying dividend starting 2003. It is not easy to deploy them in a way that creates the expecatation of return Apple's investors are expecting. I think they will eventually start paying dividend.

With Apple's war chest hitting $100 billion soon (currently around $98 billion but was originally estimated to be $60 billion) investors are asking the same question: What are you doing with the money or return it to shareholders? Putting that kind of money to work is not easy. It is over $100 in cash per share. $100 billion is roughly the same as California's 2012-2013 state budget and can literally buy a few countries or pay for a year of student loan for every college student in America.

Apple's core business is like printing money. Apple recorded a $16 billion increase in cash sequentially and there is no sign of slowing down with 66% rise in revenue with 36% rising expenses. That makes Apple the most valuable company at $300+ billion, which is close to the sum of the market cap of three computer giants: Microsoft ($200.2 billion), HP ($72.5 billion) and Dell ($29.2 billion).

Unfortunate big acquisitions don’t always work because of many reasons. And there is no magic formula for successful strategic transformation post acquisitions and most companies ended up underperforming post acquisitions. The problem is the inability to articulate the strategic logic of an acquisition and developing an organization and cultural integration plan.

At Idea Couture, we help acquirers in visualizing the future state and show how the pieces fit together in a very tangible (and credible) way. The future strategy is manifested in a well-articulated way showing its value creation potential. It is done through applied design thinking. Power Point cannot do the job. We bring the future state to the present to excite shareholders, employees and customers.

Apple’s history of acquisition has always been late stage start-ups that bring unique capabilities or technologies rather than revenue. With $100 billion you can literally buy up every early-stage start-up you want. Google has $44.5 billion for comparison.

Apple can use the money to purchase all patents over the years developed by Kodak, Research In Motion, Xerox Parc and Erickson and that can only account to a maximum 15-20% of the cash that they hold, but that patent portfolio allow them to sue anyone competing in their space in the next ten years.

Or Apple can use the money to buy up HP and Research In Motion and swiftly end Windows dominance in the enterprise market? Or buy Amazon and Netflix to reinvent and dominate content distribution.

Or Apple can just buy Sony? Funny Sony was looking at buying Apple when the company was at its worse shape in 1995. I still have a strategy deck I produced in 1996 about how Sony can leverage pieces of Apple and how the deal can create value for Sony. Now Apple could easily afford to buy Sony with its market value around $18 billion. If I am Apple’s CEO, that’s what I’ll do. Sony has been poorly managed from a corporate strategy level but does have great technologies, products, brand and talents. I would sell the studio business and concentrate on entertainment appliances. This deal can immediate further increase Apple's enterprise value. The integration part would be a nightmare.

Or just make it easy, Apple can acquire with cash HTC, Sony Ericksson, Samsung, Nokia, RIM, LG, Motorola, Nintendo which together has a combined value of roughly $93 billion. That's a lot of fun to figure out what you can do with these companies. And you still have $7 billion left to play with. Perhaps acquire New Balance for $400mm, Jobs probably would like that idea if he is still around. We miss him.

You Think Innovation Is Hard. Business Transformation Is A Hundred Times More Difficult. And In Fact It Is The Number One Barrier For Strategic Innovation.

People think innovation is almost just about new ideas. Funny how many think Blue Ocean Strategy is a big wake-up call when all it does is communicating the very the basic and simple idea of strategic innovation – how not to compete with your competitors in the same game and instead create a new game.

A strategist has the choice between getting back into the fight with existing competitors or creating a new space when there is no competition AND no proven customer demand. This is the hardest part - "no proven customer demand" and let's see what the board has to say when you tell them that your strategy cannot be validated quantitatively. New game strategy is extremely difficult to make happen for a number of reasons:

• It is hard to convince the board to bet on a market that has yet to exist
• Successful founders CEOs are stuck seeing things with an old mental and underestimaing the threats
• It is hard to change the minds of people who wanted (and have vested interest in) the old business to work and not willing to give up
• It is hard to make the switch as it requires new mindset, capabilities and organization design
• It is hard to be credible using the the current brand entering or creating the new market space
• There is the question of how sustainable the new value logic from a customer and market perspective

Looking back at the history of industrial revolution or our information or technology revolution, red oceans vs. blue oceans or a better way to describe it is “today cash flow" vs. "future cash flow" or "defender vs. "attacker" etc. Avoiding competitions in the red oceans give rise to innovation opportunities that create new market space and could triggers a new round of industrial transformation. The author did not address the dynamics of the industry transformation.

Straegy is never that simple as red and blue oceans, organizations are increasingly inter-connected as they leverage brand, patent, talent, technology, knowledge, channels, products and services from each other often located in disparate parts of the world. These complicated inter-connections often prevent companies to reinvent themselves even the opportunity is obvious.

There are many hurdles and barriers for transformation including cognitive, resource, capabilities, motivation and political ones that prevent making a new game strategy implementable. Idea Couture Brand-driven Strategic Transformation goes beyond creating, communicating and maintaining a sense of identity and belonging for the employees, we bring foresights into the process and connect the align the brand with the business strategy and the strategic futures.

The brand is used like a savings account for emotional equity while we develop an engaging and energizing feeling of commitment to the organization by creating and co-creating a shared destiny; this is where it creates the highest impact. Conventional visioning and mission writing exercises often fall short to drive transformation. The idea is to get executives and senior managers in front line employees to move beyond empty, slogan-driven communications, which are more likely to lead to detached cynicism than to engagement, and to help them develop a clear personal commitment to an organizational purpose that will reflect in all aspect of managerial actions.

Business transformation is the execution of an integrated, corporate-wide program aimed at aligning the present and future as well as the organization, strategy and brand, it ensures alignment and internal consistency by reshaping the leadership, strategy, finances, organization and operations of businesses as a whole. It is not a Power Point, it is the energy flow of an oranization.

Design Thinking And Creating Social Capital. Here's An Example From Tampiquito, Mexico.

Creativity happens everywhere. Not only in design firms or creative agencies. And you can easily find the results of creativity all around you; you don’t need to seek out a gallery. People think creativity only happens in art schools and innovation don't usually happens only in a lab. Design Thinking and Strategic Creaitivty is all around us and funny enough many don't it Design Thinking. In fact, they happen more often than in a design environment. Design is not Design Thinking.

Creativity is everywhere and you need the eyes to see them. One example is PARK(ing) Day, an annual, worldwide event that invites citizens everywhere to transform metered parking spots into temporary parks for the public good. The beauty of these guerrilla installations is in their ability to engage and energize people. If all advertisers take 5% of their ad budget and use it for street installations, I think it would be a very valuable addition to their media mix. Imagine using this space for activation in creating social capital?

Meet Luis Alvarez who is an engineer by training and owns and runs a car repair shop, Autocity, in Tampiquito, Mexico. Luis also run an art gallery and an Artist-in-Residence program that aims to engage young local and international artists in projects for the development of the neighborhood’s social capital. Both the Gallery and Art Studio are located within his auto repair shop. Yes, people create art to the sounds of auto equipment and mechanics shouting, the entire process blends into a performance all its own.

It is a first for sure. And It brings me to the question, why doesn’t this happen in other spaces? In other places of business? What about shopping malls? This is one of the most creative ideas I’ve come across this year and I think Luis’ idea has legs. So far, two Artists-in-Residence projects have started up in Tampiquito. In 2009, the urban artist Eltono came to Tampiquito, stayed for two months, and painted the facades of about 50 houses in the neighborhood.

In 2010, Luis and his friends, El Narval, invited the Colombian sculptor Ana J. Haugwitz to join them. She also stayed for two months and worked together with the neighborhood’s craftsmen. The result was a collection of nine works of art, which were exhibited publicly in the neighborhood. Each work of art reflected the young artist’s collaboration with the talent she found in the workshops. I think art itself needs innovation more than anything else. It should get out of the studio and galleries and be part of our everyday lives. We can use a few more Luis in every neighborhood.

Microsoft's Next Big Innovation: Google Maps Meets Grand Theft Auto

What's new with GPS? There were the 3D maps, then traffic information with live refresh every two minutes so to help others to avoid heavy traffic jams and GPS watch? What’s next?

Surprise the next big innovation will come from Microsoft. It is Grand Theft Auto meets Google Map. The company just granted a patent that is designed to make its maps more pedestrian-friendly meaning not only just when you’re driving, even walking. I think this is a truly innovative idea. This feature is designed to help you t avoid certain dangerous area. You know two blocks can make big differences in many cities.

This "mind-the-ghetto" feature will be killer applications in future Windows phones. So while you’re roaming the streets of LA or Chicago, your smart phones will send GPS into to a system that maps the crime statistics as well as nature of crime, day of time happened and frequency. Not sure how this will impact real estate prices or retail rent.

And they may allow you to do a trial run in the neighborhood as downloadable scenes in Grand Theft Auto on your X-Box? I am sure there is a disclaimant that you need to click ‘accept’ meaning if you do get mugged in what was identified as a safe area would not be their fault.

It is definitely a useful feature for parents to make sure the kids are not allowed hanging out in those areas and it will prompt them and send a message to the parents? If you use a little more imagination, there is so much untapped innovation with LBS and GPS.

GPS is not legal everywhere. Apple will be selling its iPhone in Egypt, people there will have to go without one of the star features: GPS navigation. Yes, because GPS is illegal in Egypt (Can you believe this?) and I think it is the only country in the world but I might be wrong. Apple is forced to take out the feature because there is a ban on the import of all GPS-enabled devices into Egypt. The ban has been in effect for years.

The Egyptian govertment considers GPS a military-grade technology that can be used to help pinpoint the location of government facilities. But if you so happen to be travelling in the desert, you’re advised to buy one, but only from the black market which you need a GPS to locate.

There Is An Inherent Conflict Between Logic, Emotion And Creativity. So How Should We Deal With It?

When peope ask the quesion "Do you know the correct answer?" I don't like that question at all. It is not a smart question as a start. The biggest problem with our formal education systems is our over-emphasis on finding the correct answer to a particular problem. While the quest for correct answers helps us to function at work, it also impedes us when it comes to making the bigger, more important decisions, largely because many bigger, real-life business issues are ambiguous, complex and dynamic. If you have been around for over 50 years and have travelled to more than 20 countries and speak a few languages and have a few degrees under your belt, you probably know there is no right answer, may be a lot of wrong answers.

Creativity is not a license to be wrong (you have been reading too much Fast Company), strategy is not a license to be boring or lack of imagination (Reading too much HBR). A PhD degree is not a license to overintellectualize and being irrelevant to the real world and use words that you need to explain what you mean. And an MBA is not an automatic license to make key business decision, you need to earn it.

However an MBA does teach you a few important concepts if only if you understand how to apply them. You should know how to re-org your in-laws into a 'team-based family.' You learn to refer having babies as pilot market testing. You should understand the cost structure and sytem implications of starting a family. You know the cost of capital when your spouse decided to purchase a Hermes Birkin. And most of all, you know how to talk about your past relationships as ‘sunk costs.’

I definitely school needs to teach more creativity. Not the crazy useless exercises but applied creativity and design thinking in everyday life from science to economics. Today (and I should say it has always been) creative thinking is critical to business strategy and innovation; however, If you look at the top 20 MBA programs around the world, you will be challenged to find any courses, core or elective, which teach, train or even inspire students to be truly creative. Instead, most MBA programs and courses focus on numbers, analysis and the logic of deductive reasoning.

There is an inherent conflict between this kind of logic and creativity, and in most business settings, logic is usually quick to get in the way of creativity. Creative ideas can run into the walls of business logic because 1/ it does not quickly, clearly or at all connect to 2/ business strategists often operate within the boundaries of defined roles, and decisions are made based on those boundaries – they draw on what they know and what they have learned including formulaic behaviors, processes and the “best practices” that have evolved through mass consensus – to shape how they think and act.

That explains how many MBA students had Adam Smith on their reading list. The 18th Century idea that people – given their limited time, information, resources and budgets – act purposefully to maximize their own satisfaction is epistemologically central to business thinking. In Smith’s view, all human behavior is rationally self-interested and we are innately selfish. Thanks to this model convinces many how “easy” it is to predict individual or organizational behavior. It is not quite that simple.

When it comes to human behavior, this is where many economic principles, particularly Smith’s, break down. I am not rational (ask those people who work wiht me) and many of us are not. The economist's notion that people act rationally only implies that they try to act in ways that are consistent with their own personal objectives, even if those objectives seem absurd to outsiders. That's the beauty of being human. Read more about creativity in this coming issue of M/I/S/C - The Creativity Issue.

The Dirty Secret Of "Creativity"? And What They Didn't Want To Tell You. Welcome to the M/I/S/C Creativity Issue!

What is creativity? How does it happen? How do we prepare ourselves for it? Or can you at all? Do you have to be a whole-brain thinker, or do you only need the right side of your brain? Can you be rational and logical while being creative? I dedicated a whole issue of M/I/S/C/ to "Creativity" and this is now in bookstores in 25 countries.

Scott Adams, a popular cartoonist suggested, "Creativity is allowing yourself to make mistakes. Art is knowing which ones to keep." I don’t think that’s necessarily the case. Mistake is part of anything and applied creativity is no exception, so I can be doing something uncreative and still makes mistakes.

Someone once suggested, “Creativity can never be achieved by imitations, and what is already been introduced.” That’s also not true. Some of the best creative pieces in science, art and engineering are results of imitations and experimentations. It is naïve to say creativity means not imitating.

Creative people usually have a few features that distinguish them from others. First, they posses both a rich body of domain-relevant knowledge and well-developed expressive skills (verbal, body movement or drawing or combination of all). Academics and creative managers like to describe creativity as a process, I think that is just nonsense. I belong to the school of Vinacke, which believes that creative thinking in the arts does not follow any models.

Gestalt philosophers like Wertheimer have also asserted that the process of creative thinking is an integrated line of thought that does not lend itself to the framework implied by the steps of a model. There is no process. It is your brain working. Despite that, many design or creative companies will tell you that they have a four-step process. Don’t be fooled: these are marketing constructs designed by marketers to make clients feel comfortable with what is essentially a messy, inscrutable phenomenon. Leave the boardroom and ask the creative department if they follow a process and you’ll get a very different answer. Or no answer at all.

Trying to reduce creativity to a linear process is counter-intuitive. Real creativity emerges from managed chaos and applied fuzzy logic. It’s never about careful calculations. It is something we will never be able to understand for a long time.

Lots of crazy things happened in this world in 2011, we cannot change the past, but let's use our creativity to make everyday a productive one and make a world a better place. Wishing all readers of Innovation Playground and all my Facebook friends 2012 a year full of HAPPINESS and BLESSINGS!!!

A Verry Merry Christmas To All Readers Of My Blog

Why Traditional Apporach To Business Transformation Don't Work Anymore?

Over 60% of companies out there are operating on a dated buisness model and 20% operating with a mental model that had expired for more than 5 years. There are little reasons for those 20% of companies to survie another 5 years or even 3 and for the other 60% they have a short window of opportunity to design and orchestrate their transformation.

Rapid changes in external environment, consumer behavior, global economics and disruptive technologies are throwing off the most rigor business strategies and the best trained managers. Although everyone expect to see big changes ahead but people reacts differently to change.

Many people become accustomed to the status quo and don't want to alter the way things are being done -- regardless of the potential benefits or the disruptive threats from emerging competition. For many, fear of the unknowns and the concerned about the ramifications on their careers are barriers to acknowlege the need for change. People don't like change. And winning belongs to those who thrive with change.

Success for operating in a neck-breaking speed and unknown environment often comes from the ability to drive the proper (or mulitple) transformation at different critical points -- for industry breakpoints. “Business as usual” simply means "end of a business or an industry." Being able to reimainge and reinvent offerings and models are critical to addressing economic volatility and staying on top of the market.

Business transformation traditionally takes the form of unfreezing to refreezing and briding the gaps in capabilities, mindset and performance. And these changes which can take the form of business strategy, management style, culture, organization design and business processes.  One most popular model is the classic model proposed by Lewin which argues that the process of change involves three stages 1/ unfreezing, 2/ change and 3/ refreezing. This model was valuable in recognizing the importance of not only new learning, but also “unlearning” old attitudes, habits and behavior patterns. Today many question the practicality of this model suggesting that a “refreeze” implies a resistance to future change and partucular the future is uncertain.

The Idea Couture Brand-Driven Transformation Model has a strong future oritentation and focused on bringing strategic foresights and organization insights to reimage futures. It uses a lot of Design Thinking principles and makes the process very tangible and collaborative. It is a process of organzation co-creation which people put their stake on what shared destinies they wanted to particiapte in creating and thus releasing energy in the process. It will take 80 Power Point slides to illustrate the process, a high-level view of this model is captured by the following formula: Successful Brand-Driven Business Transformation = P+N+C+M+I+F

• P = Develop a perspective of the future(s) informed by strategic foresights (both customer and technology contexts) and deep organizational insights;
• N = Develop a co-created brand narrative that inspired people of possibilities and put purpsoe at the core of the story;
• C = Develop a compelling case for the need for change developed and shared by all executives, investors, employees and B2B business partners;
• M = Develop a practical means to tie innovation (roadmap) and projects to the desired future(s);
• I = Design an incentive systems that are aligned to identify and encourage appropriate behaviors compatible with the desired future;
• F = Develop feedback mechanism for each stage of the process to monitor progress and provide input for continuous improvement.

Any Business Transformation process is painful. The way many organisations manage change or transformation using existing model is facing the challenge of speed. They are too slow and by the time they refreeze, the market has shifted and they need another transformation. The other important issue is key decisions are made in isolation and the change piece comes later which I argue often is too late. The future of Business Transformation is a co-created one.

On Building The Creative Culture And Learning How To "Forget" Creatively.

We had our Idea Couture Christmas staff part last week. Looking back there were a lot being accomplished and a lot more to do. What started as a little experiment bringing multi-disciplinary design thinkers together and now becoming a key driving force and intellectual engine advancing the practice of design thinking in innovation and business applications. Idea Couture is where multidisciplinary thinkers come together with shared purpose and where creativity flourishes. I am looking forward to have our London and Mexico City offices running in 3-6 months. I feel I have the right people in place and that's a great start.

At Idea Couture, creativity means more than just novelty ideas. It means new ways to frame problem, using new lenses and developing new perspectives. I am so happy when I see happy people in the company doing great things. I am happy to see people growing and that's gives me tremendous satisfaction.

At the end of the day, we're in the business of producing the non-conforming super smart and creative thinkers and doers. I am pushing the envelope everyday and so far no one is complaining. Heartiest thanks to my management team who did a great job of putting togther the first Idea Couture Award.  You guys rock!

On the road this week and spending time with people hearing them talk about their innovation challenges and how they apply design thinking. Lots of great meetings. We're aware of the big changes coming ahead. Every business, government and instirutions will be impacted. Change does not creep up on us every 10 or 20 years, it is an ever-present business and organization phenomenon that is disrupting industries and causing firms and industries to disappear. Although the degree and velocity of change is unprecedented.

Everyday we’re dealing with more and more unknown and unknowable, but decisions still need to be made. Many of the challenges today are unique and have few or no precedents, so textbook solutions (and no guru don’t waste time buying whatever best sellers) or trying to find aHarvard Business School case study. Past solutions do not necessarily apply today. The external environment is constantly absorbing shocks from technological advancement, cultural change and systems failure.

Creativity is needed everywhere to rethink and reimagine products, experiences, companies, processes and even industries. Top executives are looking everywhere for new thinking and solutions that are outside the routine of orthodox strategies and old paradigms. So where can you look for new ideas? And how can you design an environment in which creative people can survive, thrive and flourish? We can begin by asking, how can you make people creatively forget what they know in order to reinvent the future? This is where sensemaking comes into play.

A big part of sensemaking is creative “forgetting” and it is first thing you must do. We all create our own environments and then constrained by them. Being able to aware and realize the impact of our own behavior in creating the environment in which we’re in is a very important first step. Forget who we are is something worth practicing. There may not be any scientific evidence to suggest that those who know what to forget can think more creatively about the future, but in the formulation of business strategy, creativity can be seriously constrained if it is burdened by the past. The problem lies in the notion of “core competencies,” which suggest that companies should stick to what they know best. If that’s the case, then why many of those once great companies should still be around.

Creativity And Innovation In Small And Medium Size Firms

I am in Egypt this week and trying to finish three big Power Point decks, writing 6 documents and finished reading 63 documents with a slow Internet connection. And trying to finalize the editorial content for March 2012 issue of my magazine. It is not easy.

The December issue of M/I/S/C/ is the big "Creativity" issue. It will be out in 25 countries in the second or third week of Dec. This is thickest issue so far  and will also available on iPad. I like the idea of "Creativity" as a magazine theme but also wanted to make sure they are relevant to business and not just pure creativity.

People often ask what is creativity? How does it happen? How do we prepare ourselves for it? Or can you be prepared for it? Do you have to be a whole-brain thinker, or do you only need the right side of your brain? Does it require for other profession that are usually not associated with creativity too? There is no simple answer.

Creative individuals have a few features that distinguish them from their peers. First, they possess both a rich body of domain-relevant knowledge and with well-developed skills to express them through different medium. And second, they find their work intrinsically motivating and enjoy the creative process not only interested in the outcome.

Creative people also tend to have a “discovery” orientation, which leads them to view situations from different perspectives, to find problems, and to ask novel questions and to avoid group-think. Almost every entrepreneur/start-up person is a creative person at heart, because it requires a lot of creativity to start and manage a new business (with the exception of franchise business). It is harder to find creativity in large firms not because there are not enough creative people, but the organization design and business processes make it almost impossible to be creative. And for them, creativity means finding ways to work around the system but not creating new ways to meet customer needs.

For that reason, many believe that small firms are more creative and innovative than larger firms. Not only they are more creative, they are more agile and nimble. But what about mid-size firm? There are companies that are too small to be big and too big to be small?

Medium size companies tend to lack resources and expertise whereas larger firms tend to have more resources and knowledge (including hiring consultants) but more vulnerable to external shock and any radical change. People think the sheer availability of resources means larger firms should be able to innovate along product, channel, process, and paradigm more effectively. That's not true at all. Any large established businesses carry their own old mental models and operational legacies make them hard to adjust to any changes - in particularly new ideas that cannibalize their core businesses.


I am not saying it is easier for small firms to innovate, it is not for the lack of creativity. Small medium companies tend to suffer a lack of knowledge cross-pollination and carry a higher degrees of path dependency. There are basically three strategies for innovation for small and medium size firms:

1. Advancing creativity and technological competitiveness based on new processes to deliver better products
2. Advancing technological and design creativity to design innovative new products
3. Advancing creativity and design thinking to turn products into experiences

Generally these three distinct models identify three trajectories for innovation that are largely separate from one another, although some complementarities exists. Medium size firms often suffer due to a lack of strategy or expertise to develop a robust strategy.  Their innovation in processes are often the results of the need to search for greater flexibility and minimize resource requirement. The high performance small and medium enterprises are usually the results of access to strategic advice combined their speed and agility in execution.

The Tablet War Is Moving To The Next Level. It Is Not Just A Game Of Interface And Content, It Is A Service Platform Game. It Will Be Google, Apple And Amazon.

Idea Couture San Francisco was excited to sponsor and host the Tofu event last week. The Tofu Project is a nicely curated boutique program created by TokyoMango journalist Lisa Katayama and designer Tomo Saito that brings 10 of the most innovative young entrepreneurs from Japan to the San Francisco Bay Area for a 7-day design thinking and innovation boot camp.

These isn't just another Silicon Valley-meets-Japan tour or incubator. It is not just a start-up meet and share, it is more of collaborative think tank where cool Japanese people and experts on Japanese culture from all different sectors gather together to re-imagine the future of Japanese innovation and globalization. I wish I was there. Here are some pictures to share.

A busy day driving to Waterloo for a several meetings and everytime I stopped at a book store I wonder how the tablet war will evolve in the next 12 months. The tablet war is moving to level two and there are only 3 finalists. Samsung and Amazon are the only two that are strategically qualified to play this game. Sony’s new tablet may have a small chance; if it does it will be domestically. Sony has been sleeping at the wheels and has no idea what the world is like.

Amazon's forthcoming Kindle Fire tablet will be hurting the sales of iPad and put price pressure on Apple. They might end up having to reduce the price to keep shares. I don’t see any new features that can keep iPad ahead of the game or sustain the growth. Many will hold off the purchase of iPad for themselves or chose to buy Fire because it is a great alternative.

Kindle Fire, launching next week at a price of $199. They are using a Gilette strategy of subsidizing the tablet and make money from content. Apple will never do that. And for the Nook, I am not sure. It is nicely designed and engineered product, a lot of good thinking on the UI level too but lacking a strategy to play this game. Yet the sales jumped 140% the first quarter due to overall demand growth.

Amazon Fire will have a dual-core processor, a fast browser, a good display, and lots and lots of content. Preorder is already tracking to exceed a million. Amazon will build a big user base and leverage this to launch a service platform. They are not viewing the tablet as an eReader game like Nook, they see this one piece of a larger emerging strategy to go against Apple. Amazon just purchased a voice startup Yap few months ago, a technology that could transcribe voice commands into text. Amazon is quietly building out its voice-recognition service platform and will be competing with Apple Siri. That’s the next big game.