innovation playground Idris Mootee

The Economics of Co-Creation. Can What Happened To Microbrewery Happens To The Auto Industry?

A lot of talk and interest around the concept of co-creation. It is no question that this is going to have asting implications of how products and experiences are designed, developed and marketed. In 3-5 years, customer co-creation will be the part the norm of everyday business. Much like early days of ecommerce when people struggled with the legal, technical, operational issues. Slowly these issues will work their way out and we would look back and say “that’s simple…. makes perfect sese.”

What’s a great example of co-creation? Let’s first try to define it here as sometimes people refers it to anything from idea crowd-sourcing to technical expert groups to simple product/service/marketing customization. One good example of real co-creation is a company called Loco Motor.

I met Jay Rogers (founder and CEO) at the PDMA Co-creation Conference when I was moderating a panel. He was hosting the event and I was extremely impressed with what he is trying to do and has achieved to date. It is the first co-creative automobile design and purchase experience in the world. Just as the auto industry is dying for new ideas and change and Detroit needs a new strategy and it is more than making a better car. There are many structural issues to deal with and it is complicated. Jay is attempting to disrupt the auto industry by using co-creation as the strategic core.

The people in the car industry that have tried to innovate in the last 100 years and mostly fail, what makes him think he has a chance? Perhaps Detroit should concentrate on redesigning the business model and the whole experience before redesigning cars.

The first product Rally Fighter sells for just under $60,000. It’s an incredible car that looks like a life size HotWheel and gives me fond memory of my childhood. Remember the Hot Wheels yellow track?

The Rally Fighter is designed by the online community and ismanufacture at the microfactory in Phoenix, Arizona with a sustainable and highly efficient process. Jay wanted to build cars all his life, after raising $10 million seed capital, he launched the company with a simple idea that is extremely difficult to pull off. Loco Motors hosts a passionate online group of car-lovers or fanatics who compete to design vehicles for some regional communities in contests that run about once a month. The winning designs is then produced and sold to the communities.

There is more than to the flexible and customizable micro-factory, the concept here is when you give people tools, a strong community network with shared passion, some inspiration, small incentive you are in game. In fact, he is reinventing the customer co-creation experience for automotive. There are more than needs to be done in order to reinvent the economics of the industry. I think every business should look at Loco Motots and see what is relevant for their industries.

Will Loco Motors remains to be a niche business or eventually springing into a platform that supports a auto-cottage industries I don’t know. But we also need to think how we reduce traffic including rethinking local supplies network for certain products and cutting down unnecessary traffic.

An example is to look at how we replace pizza or UPS delivery with perhaps flying delivery drones – pizza right through to your windows. I am not sure if someone has thought about flying delivery drones man by 14 year old part-time students that doesn’t even have a driving license. The military drones can be converted to do the job. It is more realistic than flying personal transport, because in the event of an accident the worst is you don’t get your pizza. May be this is another idea of Jay, his Marine Corps background can be very useful. A central drone delivery operations theater that supports the nation’s takeout industry.

Random Thoughts On Muggles, Magic And Design Thinking.

For those of you who are not familiar with Muggles, they are people who are incapable of magic, and who are usually unaware of the wizarding world. Design Thinking is sort of like wizardries, it takes certain type of people with the certain type of training, Hogwarts or Harvard.

When Muggles think Design Thinking, they see nothing new there and they believe it has been around for a long time, it basically means they still don’t get it and may never will. They hardly see the real challenge, it is simply not to invent a better mouse traps. We care capable of doing more and being more innovative. The power of our imagaination is what it is.

"It is our choices that show what we truly are, far more than our abilities."  ~J.K. Rowling, Harry Potter and the Chamber of Secrets, 1999, spoken by the character Albus Dumbledore

Design Thinkin is alot more than lateral thinking and creativity de Bono style or ad agency style brainstorming. Design Thinking fills the gap created by management theories and business schools which analytical thinking and data-driven decision making override intuition where empathy is never part of the equation.

Companies have been battered by system level economic failure, extreme uncertainties, and the failure of traditional forms of strategic making, leadership styles and management model. These wounds have left businesses gazing hopefully towards Design Thinking. Design Thinking is bringing a refreshed, revitalized, and rejuvenated approach to management and strategic thinking- however, design thinking is far from a cure-all. It takes a certain type of people who are comfortable with different thinking styles. I’ve read so much poorly written papers about design thinking and many of them don’t even grab the basic principles and its true transformational power.

Often people talk narrowly about design and prototyping, but Design Thinking is not just bringing the power of empathetic creative problem-solving to bear on a human needs, it is an organization culture, a mindset, a framework and a toolkit to solve complex wicked problems that we created. It provides a balance between the needs to create customer value, shareholder return and social value. Design Thinking is strategic.

Everyone comes to me hoping to join Idea Couture claims they are creative, they have great ideas and can turn ideas into great products and create new markets. Go deeper and I ask the how… there comes the sound of silence. Great Idea, great products, great business is a tagline, not a strategy. Design Thinking can be applied to fill the gaps of traditional strategic thinking. The increasingly complex needs of the business need a new toolkit and Design Thinking is exactly what is needed. It helps to uncover new needs, creatively redefine value, reconfiguration of value-chain activities, develop compelling brand narratives and create markets that are yet to exist. When my friend Roger Martin advocates Design Thinking, he is not talking about ethnography or prototyping; he is talking about a whole new management paradigm.

Everything is designed—from behavior, systems, organizations to public policies. Design is universal. The dirty secrets of why how big corporations destroy shareholder value are actually no secrets. Everyone from the board of directors to the frontline employees knows 'why' a company is 'stuck.' Because their structures and management systems are so rigid and can’t adapt to changing market shifts or respond to any disruptions; their over focus on core competencies and optimization that prevent them to see beyond the core and; fail to see and anticipate the future and even if they see it they fail to act on it. This is where Design Thinking comes into play.

Everyone understands the need to make money and everyone hope they can do magic. And everyday many moguls are trying to create magic with cute packaging and fancy taglines and hoping to make a lot of money, off course it won’t work. The real magic lies in understanding deep human desire and unmet needs and anticipate emerging behavior, not every company truly understands how to do it. They teach those at the Ministry of Design Thinking.

Design Thinking And Minimalist. Not Waterd Down Simplicity But Blending Style And Simplexity.

I have always admired the work of Yohji Yamamoto and Comme des Garçons ( French for "like boys") designed by Rei Kawakubo. Both are similar and very different. Both operate at the intersection of fashion, art and architecture and it so happened that the output is fashion. I am a big minimalist fan although my lifestyle doesn't allow me to become one. After twenty years, I am still working on it. I am hopeless I guess. I am often distracted by other things and hard for me to stay true to it. May be this is the time.

I think this is the perfect time for minimalist thinking to become mainstream, not only in style but in minimlaist design thinking. We have been over thinking about many things. Most products are overdesigned and our life is overcomplicated. We want less and not more. And I am not talking about a watered down voluntary simplicity or sacrificing style or substance.

True minimalism is an highly intellectual exercise and a state of mind. The practice of minimalism is still primarily reserved to a small group of people in fashion, architecture and art (and i-bankers). I am in favor of mass adoption of minimalism as a philosophy. A simpler lifestyle and less complex.

I visited the lastest Yohji's exhibition at the Albert and Victoria Musem in London last week. A very small exibition but still worth visiting. His work is characterised by a frequent and skilful use of black, a colour which he describes as 'modest and arrogant at the same time. He is famous for his white shirts with subtle design. He believes that black is the only genuine colour (and white) and it's his essence.

The exhibition space houses about 60 creations and a multi-media timeline which reveals Yamamoto's wider creative output. Central to Yohji's work are the textiles. ‘Fabric’ he said once ‘is everything’. Each one of the fabrics used in his collections are made to his specifications by different craftspeople in and around Kyoto in Japan.

It seems the minimalist movement is making a comeback. The Japanese minimalist movement, which radicalised and democratised the fashion world in the early 1980s is creeping back and making a scene. Yohji needs to go mass. There is a stuborness for any haute couture house. His company filed for bankruptcy in 09, struggling under six billion yen (£40 million or US$65 million) of debt. I think Yohji needs to think out of the (black) box and reimagining about applying has philosophy and lifestyle outside fashion. I love to write more but have to go back to writing for the next issue of my magazine M/I/S/C. I am a week away from editorial deadline. 7 days a week is not enough for me, I need at least 12.

 

Do You Know The Difference Between Design Engineering And Engineering Design?

Went to the Made in Brunel opening last week, Made in Brunel showcases creations from within Brunel University’s School of Engineering and Design. The show was held at the Bargehouse, four storey building on the South Bank featuring an array of technological, sustainable, humanistic and virtual innovation concepts and prototypes.

Many wonder where the name Brunel comes from, Isambard Kingdom Brunel (1806 -1859) who was a leading British civil engineer, famed for his bridges and dockyards, and the construction of the first major British railway, the Great Western Railway; and a series of famous steamships, including the first propeller-driven transatlantic steamship. The school has a very good brand management program which is rare as a degree program.

There are a lot of work showcased in the Made In Brunel show and as always the quality of ideas varies. A few ones caught my attention including some concept explorations for Foursquare – the location social network by Chris Strickland, a graduate of product design engineering school. A number of mini appliance prototypes that allow people to play with information physically with their hands. By physically with the pods, people are able to combine different forms of content.

Foursquare Gaze has two components including the six Pods provide the interaction with up to the minute information and the Home which keeps the Pods charged and provides a safe place to store them. When each pod is taken away from Home, wireless connections ensure that they are kept up to date with the latest information. In this way the experience can be taken anywhere in the home.

Another interesting one is a concept to use physical items to manage utility costs at home (perfect for the modern couple) by Nick Sardar, a product design graduate. It is a physical interface (see photo below) where each cylinder is assigned to a financial aspect of your life. It is like open books household budget management.

There has always been confusions among people between industrial/engineering design and design engineering. And the same confusion applies to art school and design school which the lines are often blurred. Standford D-school was originally a engineering school, Brunel is an engineering school, Rhode Island is an art school, Arts Center is a deisgn school, RCA is an art school but certain grad programs are more like design engineering school. The lines are fast blurring. Many students are confused.

Here are what the definitions from Wikipedia but probably can use some modifications: Industrial Design (ID) is an applied art whereby the aesthetics and usability of products may be improved. Design aspects specified by the industrial designer may include the overall shape of the object, the location of details with respect to one another, colors, texture, sounds, and aspects concerning the use of the product ergonomics. Design Engineering (DE) is a discipline that creates and transforms ideas and concepts into a product definition that satisfies customer requirements.

The definitions of these two categories of design have a fundamental difference between them: ID is an applied art, whereas DE is a discipline. This means that industrial designers have more room to dream, immerse, create, interpret or expand an idea than design engineers to design everything that they or their customers want. And for design engineers, the job is explore material, heat, modularity and other engineering constrains and at the end is to make it work. Many are still confused as to which one does what. Even prototyping means very different thing for each of the two. Although in some cases the line is not clear.

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.