innovation playground Idris Mootee

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.

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.

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.

Apple Is Gearing Up To Attack The Living Room And To Turn Siri Into The Next Google?

I am exciting seeing the advance copy of M/I/S/C next issue - "The Creativity Issue". It will be in bookstores in 22 countries sometime first week of December. Now starting to work on the next one - the "Big Insight Issue". I have a few great ideas and now looking for some good guest contributors. Publising is painful but fun and thank you for those 50+ emails that compliment our effort. It is great to see that people are really liking it.

I’ve been following and speculating how Apple will be using Sirri acquisition strategically to compete in the next white space. Imagine Apple is now working on creating the next home entertainment experience, a place that is still not occupied by Microsoft?

I can’t wait for the day that I throw away every remote control that I have in my living room. First it is hopeless for me to figure out their functions and second they are ugly and don’t fit in my modern and elegant living room. What I want to see is I can just say a command and the TV or the controller will translate them and activate them.

The Siri in the living room will be different from the one on your iPhone. It will be your personal entertainment assistant and understand whether you’re in the mood of a movie, convert, news or just some soft jazz. I think this is the killer app for TV and will give Apple TV a real chance to take off. Up till now Apple TV is just a little experiment. I think we are 18 months away. There are still a lot of challenges such as bandwidth in some cases and voice recognition accuracy. May be there will be a tactile interface control or gesture-based control in additional to the voice command. The beauty is Siri doesn't need a rigid set of voice commands an able to interpret natural phrases by picking out keywords and some other cues.

And then the whole idea of “search” will bring Google into the game. It is reported that they are throwing resources into a refreshed Google TV and Apple has bought its third mapping company, beefing up its cartographic portfolio with eye-popping 3D imagery based on declassified missile-targeting technology.

Apple will be playing the same new game strategy as it did to the music industry creating an industry breakpoint. It will be a hardware, software and integration play powered by the iCloud. They still need to soft the gaming piece which Xbox and PS3 are the last defensible positions. I hope the Apple TV set will be available in black other than silver and white.

Thank You Steve! Let's Type This On Our Touchscreens "We Will Miss You Steve Jobs."

It is a very very day with the news that Steve Jobs, who has died aged 56 following a long battle with pancreatic cancer. The world has lost a visionary, not only he made an unprecedented impact not only on the world of computing and consumer electronics with insanely great products that inspired a generation of people to dream big and be different, he has also reinvented management by building and rebuilding one of the greatest companies on earth. His creative and innovative spirit and remarkable accomplishments will forever be remembered by all of us.

Steve was the most creative person on earth in business I’ve known of. His creative spirit will inspire many for decades to come. You wonder what’s makes Steve so creative? And what is creativity anway? How creativity happens? How do we prepare ourselves for creativity? Do you have to be a whole-brain thinker? Or you only need to be a rightbrainer? Are there many more young Steve Jobs out there?

Creative individuals have a few distinctive features that distinguish them from their peers: They have a rich body of domain-relevant knowledge and well-developed skills, also they find their work intrinsically motivating (Simonton 2000; Amabile 1988). They tend to be independent, unconventional, and more risk-taking, and to have wide interests and a greater openness to new experiences (Simonton 2000). Steve met all those criteria and was a perfect archetype of a super creative person.

Creative individuals also tend to have a strong “discovery” orientation, which leads them to look at situations from different perspectives at the same time, to frame problems differently, and to ask novel questions. Some academics and creative managers like to describe creativity as a process, I belong to the school of Vinacke that believes creative thinking in the arts does not follow a model or any models. Ask any top creative talent, see if they follow a process. I never like the idea to reduce creativity to a five staged process. It is simply not creative to do so.

The best creativity comes from managed chaos and applied fuzzy logic. It is never about careful calculations and you simply cannot engineer lucky accidents. It is also about committment to make change, it is a powerful motivator for creative people. Design Thinking helps organization to improve its creative and imagination capability, but it is not a creative process. Creativity has no process. Don’t waste your money on any books. Just read Steve Jobs’ story.

Steven Paul Jobs, management guru, creative visionary, businessman, born 24 February 1955; died 5 October 2011.

Does Management Needs Creativity? Is It A Gift Of God Or Product Of Preparation, Practice And Training?

This has been a very crazy week between meetings, conference calls with London, Mexico City, Shanghai, Seoul and Paris, magazine deadline and cover shoot, staff party, a number of other social events, and London Business School's worldwide alumni celebration took place last Thur in over 80 cities, and it was great to catch up with many familiar faces.

The next issue of M/I/S/C is the big "Creativity" issue - the magazine is doing so well and it is putting some pressure to keep up the quality. I started them magazine in a few weeks and operate it on a "zero planning" basis - meaning I do not have an editorial calendar, or editorial meetings and everything is sponstaneous. Scary thought for some. I was wondering what should I do about the cover last Monday. Decided to use a dancer instead of a model for the cover on Tuesday. Picked up the phone and called a dance school the same day and talked to Karen Duplise of Ryerson Theatre School (Performance Dance Degree Program) and went in for a quick casting the next day. Studio booked and shooting session scheduled on Thurs. Friday was for picture selection. I am pretty happy with it. You have to wait 10 weeks to see the next cover. Here's a peek.

Dance is like design, the question is always about how much art (the craft) and how much creativity. Celebrity choreographer Twyla Tharp choreographed Push Comes To Shove (1976) which featured Mikhail Baryshnikov and is now thought to be the best example of the crossover ballet. The crossover was a perfect example of creativity in a highly disciplined art. 

Tharp has written a book about creativity - The Creative Habit: Learn It and Use It for Life.  In the book she shared what she has learned about creativity and how those lessons apply to anyone with creative impulses. She believes that creativity is not a gift from the gods, but rather the product of preparation and effort. Some truth here but not sure I torally agreed with that.

 

Like to share a reprint of my interview with London Business School Alum News on new thinking that is crucial to innovation, first apprared in LBS Alumni News and then LBS IMPACT.

What do you see as your impact on the world? My LBS degree was my second graduate business degree. I was able to have the luxury to put more focus on the quality of the learning in one specific subject area rather than multiple foundation components. I was excited about learning from inspiring teachers such as Sumantra Ghoshal, Tom Stopford, Jules Goddard and many others. They inspired me to think about deep management and leadership and helped me to realise the difference between good managerial practices influenced by bad management theories and good management theories applied through bad managerial practices.

Business and government leaders are experiencing a profound crisis of trust and even legitimacy and that has triggered a loss of confidence in traditional ways of ‘managing’. The very core of many management theories is being questioned and ‘management’ is close to, if not passed, the point of failure. My mission is to help Fortune 500 companies make sense of what’s going on and to rethink, re-imagine and reorganise for a future of unprecedented uncertainties and opportunities through applied design thinking. I operate at the intersection of design thinking, competitive strategy and organisational change.

What indelible mark do you want to leave on the world? As a side project, I publish a design thinking and innovation magazine called M/I/S/C/ (Movement/Intuition/Structure/Complexity), the idea came to me when I was in Milan trying to decide what magazine I wanted to read on the plane. I really wanted one about innovation and change but the ones on the shelf were not hitting the mark. So I decided to start one. It is doing amazingly well selling in over 22 countries. Now we’re doing a Spanish edition as well as an iPad edition. I hope it can take on a life of its own and leave a mark by inspiring future managers and business thinkers.

What is the greatest lesson you’ve learnt? I learnt that it is very important to embrace failure. I should have failed more and more often when I was younger. But unfortunately people did not encourage ‘embracing Failure’. I didn’t take many risks and I played it very safe with every project I started. I did everything I could to make it work because failure was seen something that holds you back. I know now that you learn more when you fail often. Trying to avoid failure only prevents growth but once you alleviate that fear many more opportunities present themselves to you. Slowly, ‘failure’ is starting to gain acceptance and it will make future professionals much stronger and wiser.

What was your biggest mistake? Not listening to my intuition. It’s difficult to trust yourself when everyone and everything around you is telling you something different. Trusting your gut is one of the most important things you can learn. Also, not leveraging the opportunities that come with any crisis. Every situation presents obstacles but also opportunities – you just have to look for them.

What is the next step for you? I’m very excited about helping companies power into the future through design thinking. It is the reason I go to work (or the airport) every morning. Our company started as an experiment and is now fast becoming the most talked about innovation firm. The next step is to secure a global presence and build the next generation of leaders that will propel our growth. The future is exciting.

The Past You Can't See, The Future Is For You To Imagine and Shape. Welcome To The New 'Future' Issue of M/I/S/C Magazine.

Here’s the Jun issue of M/I/S/C which will be coming out in newsstand in a week. This will now be available in 22 countries outside of US, Canada and UK. We’re so happy with this issue and I always thinks the ‘Future’ idea is always an exciting one. As Terri Guillemets puts it “The past can't see you, but the future is listening.” I always find it fascinating when I see a magazine cover featuring something about the future – technology, economics, design or anything.

I have been speaking with many senior executives recently on future and strategic foresights. They were so excited when I showed them how we bring strategic foresights into their planning process and how we can show tangible futures.

Our strategic foresights approach is both rigor and unique and very tangible. It is the opposite of some dream up scenarios and random visions by armchair self-claimed futurist. Let me remember the future is not an end state. Tomorrow will someday be today, which will fade into yesterday. As our world moves through this unyielding passage of time, how people act in our world will determine just which of many possible futures we end up with and how our imaginations, actions and open-mindedness can shape a very different and more positive future. Given how little we know about it today.

What do we know about the future and what’s considered useful information to help us understand the future? The “easy” and only certain answer is simply that the future will be both dramatically different and yet pretty similar. Not only we don’t know about the future, we know how little we know about the human mind and human behavior. As the proverb says: “Every 100 years, all new people.” Now every 20 years I suppose.

This new issues you will no longer find me writing every single piece of the content, I have invited numerous contributors that enriched the content but without losing a voice. This issue we are also featuring a number of Royal College of Art / Imperial College graduate students and their work-in-progress as well as a number of future oriented innovative ideas from the MIT Global Challenge all are working towards solving some of the world’s most wicked problems. For the special feature, I will let you find out yourself, it is a piece that I collaborated with Mat Lincez and Ricky Thomas which I hope you will like.

I am in London the next two weeks and will be working on a client’s site but thinking about the next issue - the “Customer Experience” issue. I have no ideas what I want to do exactly on this one. I think I will figure out in the course of the next few days or hours. And for the cover, will be casting for a cover girl and shoot the next cover in London next week.

Officially Launching The First And Only Design Thinking And Innovation Magazine - M/I/S/C. Available In 18 Countires. Now Reviewing Proposals For Foreign Language Editions.

Great lacunch party last night for M/I/S/C, second launch party in San Francisco in a few weeks..and then Shanghai. 200+ cool people showed up. Food is good..and the cupcakes too. Special thanks to the folks who pulled this off in such a short time..Ashely, Lucy, Marla, Sherry, Jessica, Christian, Brooke and a few others... great job! The food was great, food catered by Caplansky's Delicatessan, speciality bite-size cupcakes by Cutlepiecupcakes. Speical thanks to Umbra for hosting us. Let's do another one soon.

I was once a "magazine junkie"; now after rehabitation I am now a very selective reader or not having the luxury for not being one. I cut my magazine subscriptions from 105 periodicals a fewyears back to 10. I have to cut one if I want to add a new one (I learned this from someone...). So it will always be 10.

Last year we’ve seen the changing hands and closing of some of the most prestige and long established business magazines including Business Week and Newsweek and some new one such as Portfolio which I find the positioning odd. So people ask me if I am crazy or foolish publishing another new magazine.

I am kind of both I guess. I think there is a future in magazines, but it won’t be like the old one. I love Business Week, but it is not a sustainable business model. It is an educated-consumer read: venerable, timely, credible, respected, well packaged and produced. Which is another way to say, in new media: slow, old, closed and expensive to produce. And it is still based on an old publishing model.

Newsstand sales for the almost 500 consumer magazines in the US measured by the Audit Bureau of Circulations have been on a steady decline last three years between 8-12% for consumer magazines. Many publishers didn’t make it through the rapid decline in advertising dollars and struggling with integrating with the Internet thing. And the iPad thing turned the publishing upside down and changing the game quietly.

I have been having problems with mainstream publishing anyway so I don’t see this as an entirely bad thing. The whole thing about “culture of mass media” or “popular culture” is moving our society backward or at least stopping us from moving forward. Let's take the "mass" or "popular" out of "mass media" or "popular media". Just look at what magazines they are selling at Walmart and you understand what I am talking about.

To some extend it is the same case for TV. JTV and JP (Junk TV and Junk Publishing) are hurting us and thanks to the Internet, many of us can do without TV and same for these poorly produced magazines. Many don't worth the trees they killed.

What is M/I/S/C magazine? I came up with the idea one night flying redeye. I said to myself I am trying to pick up what Bruce Nussbaum left behind at Business Week. I really like that supplement when he was the editor-in-chief of that section. 

Inpsired by Nussbaum's vision, M/I/S/C will be a new global media brand designed to take over when he left unfinished at Business Week, the mission is make design thinking and innovation practices accessible to a broader readership; the magazine will be positioned on newsstands alongside the other cutting-edge cool titles such as Monocle and Fast Company. I can't name another cool magazine, there are a bunch of good design and architecture magazines and not much that gets me excited. Bring me back Industry Standard, not sure if anyone remember that short-lived one. 

M/I/S/C is basically organized around four key concepts: Movement / Intuition / Structure / Complexity, M/I/S/C blurs the boundaries between business, innovation, design, technology, art and culture. I want to show the world we can produce a world-class product in 30 days with limited resources. M/I/S/C will always be in Beta. I never promise you a finished product, there wont' be one.

Theodor Adorno said it right, "Standardization, moreover, means the strengthening of the lasting domination of the listening public and of their conditioned reflexes. They are expected to want that to which they have become accustomed and to become enraged whenever their expectations are disappointed and fulfillment, which they regard as the customer's inalienable right, is denied, and even if there were attempts to introduce anything really different into light music, they would be deceived from the start by virtue of economic concentration."

Actually Adorno's critique was not directed against popular culture per se, but the specific kind of mass culture produced under monopoly capitalism which our system is designed to encouoraged in order to get market power. Consolidation of industry that drives efficiencies also takes out the heart and soul of the culture business. Take a look around us and see how popular culutre media = junk.

Popular culture posses a threat to innovation by destroying niche and novelties and sensibility of micro-cultures, which are essential to innovation. Many of today’s mass culture was not ‘mass’, these mass culture was imposed from marketers and media owners rather than derived from the people. Is there something called "mass culture" or it is just the advertisers that liked us to believe that.

I need to get back to my day job and this weekend I will start looking at content for the next issue.  Now onto the next one – the Future issue. The future is exciting.