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Tuesday, May 8, 2012

See How One Company Transformed Its Boring Products To Save Its Business

Ultimate Man CavesWhat color do men paint the Den? CIL Paints is betting it's not Butterscotch.

Recently, the Toronto-based company's managers looked at the marketplace and saw an opportunity: Paint-color names are all pretty ladylike.

If your industry is full of sameness and you're having trouble figuring out how to differentiate your products, here's an idea for how to inject something fresh.

Sometimes, all a product needs is a new marketing angle. CIL they held a contest on Facebook to rename some of their hues for an Ultimate Man Caves collection aimed at male shoppers. Talk to us about leveraging your capabilities.

More than 15,000 responses later, Fairytale Green had become Mo Money, and Butterscotch became Beer Time. Plateau Grey was 5 O'Clock Shadow. Juliet's Potion is now Zombie Apocalypse, Lexington Park is Dirty Socks, and Classic Liberty Red is Rust on my Truck. In all, 27 colors were renamed.

CIL then created a manly dream book of bars, bathrooms, bedrooms and media rooms decked out in the new colors to show how they could style up a man's domain. What do you imagine they can charge for these newly named colors? I'm betting, whatever they like. After all, there's no other paint being marketed this way, to this customer.

This isn't just a clever marketing trick. This is recognizing a market segment that's not on your competitors' radar and getting them engaged and interested in your products. Yes, women make most paint-color choices, but CIL's research showed men often give the final nod. And if a room is primarily a man's domain, why should he paint it Bone White when he could adorn it in Beer Foam?

In appealing to men, CIL didn't just man up its colors. It made them funny. It brought a different attitude to a pretty staid industry. The company is betting that will be a hit with younger male homeowners who're just starting to decorate. This could be a chance for CIL to land them as lifetime customers. via entrepreneur.com

Consulting, Speaking & Coaching. Driving Growth through Innovation 

Innothink Group is a strategic management and innovation consultancy. Where many consulting firms are reluctant to bear risks or tie their rewards to project outcomes, we decided to build a better model. We align our success with yours. We’re outcome obsessed, outcome paid, putting over a third of our fees at risk subject o hitting predetermined milestones. More than a guarantee we wanted from the outset to create true partnerships. 

For speaking, coaching or consulting inquiries contact: 

 

CEO Jim Woods

+1 719- 649-4118

 

Five Steps for Embracing Consumer Innovation

Using a GPS system and small tags to create a way to find things that get lost in a house. Creating a coat that’s easy to put on and take off while in a wheelchair. Coloring the two halves of a clock different colors to teach children the concepts of “past the hour” and “before the hour.”

Those are some of the consumer innovations that were found by Eric von Hippel, Susumu Ogawa and Jeroen P.J. de Jong in their research into the scope and frequency of how consumers modify existing products and create new ones. “The Age of the Consumer-Innovator,” their report on the first-ever national surveys on consumer innovation in the U.S., Japan and the United Kingdom, is the cover story of the new Fall 2011 issue of MIT Sloan Management Review.

How can companies best work with these “casual entrepreneurs”? Here are five steps, drawn from the article:

  • Understand that “lead users” are key. “Some users — termed “lead users” — are much more likely to develop commercially promising innovations than the average consumer,” write von Hippel, Ogawa and de Jong. “Lead users are those who are both ahead of the majority of users with respect to an important market trend and have a high incentive to innovate.”
  • ID those lead users. Co-author von Hippel, a professor of technological innovation at the MIT Sloan School of Management, offers at his website free training materials to find lead users, including a lead user project handbook and videos.
  • “Stop attacking your innovating users, whether intentionally or by mistake!” The authors are emphatic about this. It is counterproductive, they note, for companies to deter through criminal threat users who might simply be trying to inspect and alter a product to make it better. Ditto for consumer innovators who are using products in new ways that could lead to new markets.
  • Actively support consumer innovation. “Create documented, open interfaces to support modifications to your products,” suggest the authors. Create “developers’ toolkits.” Create websites where users can share information and innovate together. Consider even providing special access to in-house developers.
  • And about those in-house developers: Get them on board. The authors write: “Companies will have to help their own product developers look at consumer-developed innovations with new eyes — not just as poorly engineered amateurish efforts. Product engineering is not the value companies should look for in the consumer-developed prototype product and related usage. The consumer is showing a product prototype that performs a novel function that people have actually demonstrated that they want. That is the priceless information your companies must take on board.” via sloanreview.mit.edu and Leslie Brokaw

Consulting, Speaking & Coaching. Driving Growth through Innovation

Innothink Group is a strategic management and innovation consultancy. Where many consulting firms are reluctant to bear risks or tie their rewards to project outcomes, we decided to build a better model. We align our success with yours. We’re outcome obsessed, outcome paid, putting over a third of our fees at risk subject o hitting predetermined milestones. More than a guarantee we wanted from the outset to create true partnerships.

For speaking, coaching or consulting inquiries contact:

 

CEO Jim Woods

+1 719- 649-4118

A Maze Of Tunnels Made Only Of Packing Tape, Suspended In Mid-Air

How's Your Business Doing? We can help. Contact us for your free consultation!

Speaking & Advising 

As the CEO and founder of InnoThink Group, Jim can help your organization enhance the strategic innovation and competitiveness of your business policy and strategy, with an emphasis on increasing top line growth. 

If you’re interested in having Jim speak at your next event, simply use this form to send us your details and speaking requirements, and we’ll be in touch shortly. Or you may call us at 719-649-4118. 

Coaching

Need to grow your business and career?  Business, Career or Life Coach. We Have The Right Strategies to Revamp Your Life and Business.  

 

How Not To Suffer The Fate of RIM Blackberry. A Lesson in Commoditization and Longevity

 

 

They have volumes in common with you.

It shouldn’t come to much surprise that the embattled Research In Motion, makers of Blackberry, will become that next failed company. Despite occasional resuscitation from loyal fans, reminiscent of Saab’s recent fiascos which lasted years too long, RIM created a niche only to fall prey to the enemy of the great: Commoditization. RIM’s stock is down ytd at this writing by a mind numbing 70%. This didn’t need to happen. 

RIM was “The” smartphone company until a competitor named Apple out innovated and out competed their own product. How did Apple deftly spring past RIM? Surprisingly with ease. RIM forgot they would have competition. Most would presume that RIM with its well priced iconic product Blackberry would assuredly not be affected by commoditization in which a product becomes indistinguishable from its competitors. You would be wrong. What is happening with RIM is probably occurring in your company. 

The road to ubiquity is laced with land mines.  At a time when business moves at the speed of thought RIM responded to business demands traditionally slow if at all. RIM was slow to advance from its core market of B2B to B2C which was fast becoming tepid and then continually released poorly designed products. Flanked by a perpetual assault by competitors i.e. proliferators on price and innovation such as Google android and Apple with their “rope a dope” techniques, RIM continued to over promise and under perform.

I find three reasons why RIM has failed. 

  1. Deterioration – When low end competitors move in with low-cost, low benefit drawing the mass market.
  2. Proliferation – When competitors develop new combinations of price and unique benefits attacking an existing market.
  3. Escalation - When competitors squeeze profits by offering more benefits at the same or lower price.

If you were RIM’s CEO or Board person you would find they have faced two out of three of the challenges. Deterioration and proliferation.

 Now, RIM is undermined by a reputation of poor quality, lack of innovation an inadequate customer service.   

Earlier this year at RIM's Capital Market Day Mike Lazaridis founder and Co-CEO of RIM announced he was presenting on RIM’s Playbook. He discussed the features but little to nothing on differentiation. 

In Jonathan Geller’s the "Boy Genius” he writes: 

“Picture yourself sitting in an executive briefing at Research In Motion. You’d hear Mike Lazaridis unequivocally state time and time again that BlackBerry smartphones would never have MP3 players or cameras in them because it just does not make sense when the company’s primary customers were the government and enterprise. “BlackBerry smartphones will never have cameras because the No. 1 customer of ours is the U.S. government,” Mike Lazaridis would say in meetings. “There will never be a BlackBerry with an MP3 player or camera.” 

What does Mr. Jobs do? 

He strutted the iPhone which eschewed the design of then top players RIM’s BlackBerry and Palm’s Treo line. Avoiding groupthink, Apple and Jobs dropped the keyboard, and replaced the stylus with the finger and multitouch. RIM? 

Continues Geller: "When you hear Mike (RIM CEO) talk about the latest and greatest, it's been the same thing for ten years: security, battery performance, and network performance. RIM has positioned battery life and network performance for years. People are not concerned with iPhone batter life," one source told me. Network performance to Mike trumps any innovation a device like iPhone offers. Mike is convinced people won't buy an iPhone because battery life isn't as good as a BlackBerry."

This is a textbook example of deterioration. The outcome is predictable.

In today’s business environment there are new rules of war: 

  • Speed
  • Agility
  • Adaptability
  • Innovation
  • Fierce competitive resolve.

This is the new world of business competition at the speed of thought. The old days are the old days. RIM's leadership looks grim. They are models of security conscious businesses for sure. A feeling of victory is understandable. But not where investors are lukewarm with growth prospects and more erstwhile competitors are nipping frantically at the flanks.   

How's Your Business Doing? We can help. Contact us for your free consultation!

Speaking & Advising 

As the CEO and founder of InnoThink Group, Jim can help your organization enhance the strategic innovation and competitiveness of your business policy and strategy, with an emphasis on increasing top line growth. 

If you’re interested in having Jim speak at your next event, simply use this form to send us your details and speaking requirements, and we’ll be in touch shortly. Or you may call us at 719-649-4118. 

Coaching

Need to grow your business and career?  Business, Career or Life Coach. We Have The Right Strategies to Revamp Your Life and Business.  

 

How To Develop A Growth Mindset - Innovation on Low (or No) Budget

The Boeing 787 Dreamliner can seat up to 250 passengers and haul a half-million pounds. The Boeing (BA) jet has a range of up to 8,200 nautical miles and reaches a maximum speed of nearly 650 miles per hour. Its development required an investment of some $30 billion.

The new Big Dinner Box from Pizza Hut (YUM) can haul two medium pizzas, eight wings, and five breadsticks. It has a range of a few zip codes and reaches a maximum speed of what the delivery driver can get away with. Its development required, well, a different kind of cardboard box.

My point? How simple some innovations can be. You don’t have to have a monstrous research and development budget (or even a test kitchen, for that matter) to innovate. You just have to be alert to your customers’ needs and wants—and creative and responsive in addressing them.

Some innovations do require many years and billions of dollars to develop; witness the Chevy (GM) Volt, which took nearly four years and more than a billion dollars to go from concept car to street legal. (The verdict is still out as to whether it will become a commercial success.) Contrast that with Dr Pepper 10, a soda that targets men who don’t like the taste (or the idea, perhaps) of diet soft drinks. By using a different sweetener and throwing in a tad of good, old-fashioned high fructose corn syrup, Dr Pepper Snapple Group (DPS) came up with a formula that is showing such positive initial returns that the company is already expanding the concept to five of its other brands.

“A Better Way to Deliver Value”

The key to innovation is to not wring your hands about what you don’t have—a giant research budget and staff of PhDs—and focus on what you do have: a relationship with your customers.  Saul Kaplan, founder of the Business Innovation Factory, defines innovation in very simple terms: “a better way to deliver value.” In a recent interview, Kaplan explains what he means: “It is not an innovation until it solves a problem that a customer is having—it delivers value in the real world, solves a problem, and helps get a job done that a customer is trying to do. A lot of people confuse innovation with invention, and think that they just need new technology to solve a problem. But an innovation is not the same as an invention.”

He’s right. Inventions are almost always innovations, but innovations don’t have to be inventions. They just have to be a better way to deliver value. This Christmas, many personal-care product makers such as Procter & Gamble (PG) and Unilever (UL) are putting together gift boxes of toiletries as prosaic as deodorant and toothpaste. If that sounds like the contents of your medicine cabinet, it is. Still, by packaging their products as “affordable luxuries,” these companies are meeting consumers’ needs for simple, inexpensive stocking stuffers. That may not work so well in neighborhoods with circular driveways, but for the rest of us, it’s a gift we could really use. And while our gift-giver stretches his or her budget by (literally) getting a package deal, the manufacturers get to increase exposure and move more product.

Who would have thought a handful of personal-care items would make a great Christmas gift? Not me, but some enterprising packaged goods makers were paying attention to what highbrow cosmetic brands have done for years and have simply applied the concept to their own customers. That’s a helpful template for fostering creativity in innovation—combining two previously unrelated ideas into something refreshing and new. Dr Pepper found something refreshing by combining a diet soda and a regular soda and positioning it for people whose desires weren’t being fully met by either. P&G discovered something new by combining consumer staples with fashion thinking to create a simple, practical gift for challenging economic times. Pizza Hut combined a delivery box with a confectioner’s sampler so it could sell more of every kind of product it serves. You may read this splendid article in entirety via businessweek.com

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Jim Woods is president and founder of the InnoThink Group. He is a no nonsense "tell it like it is" author, speaker, and a strategic management, innovation, commoditization and hypercompetition expert to business and government. He advises clients with an objective view of their competitive capabilities and defines a clear course of action to maximize their innovation return on investment to achieve profitable growth. To build your capability for ongoing innovation across your company or to secure a riveting speaker for your next event - Call 719-649-4118 or email us for more information on hiring Jim. Check Availability. 

Do The Ends Really Justify The Means? Actually, Sometimes They Do.

Before dismissing this article by Tom McNichol hear him out. He makes a valid point. So, here is one for you. In rebuilding your organization for the new normal, do the ends justify the means? But...when considering Mr. Jobs accomplishments, perhaps they do. For business is in a battle of hypercompetition. Most businesses even in this downturn continue to belie an unimaginative and myopic agenda. No one can ever accuse Mr. Jobs of that. Jim

Apple's founder and CEO could be a cruel and nasty guy. He was also the greatest chief executive of our time. Don't go thinking those two things are related.

steve jobs jerk 615.jpg

AP Photo/Jeff Chiu

Steve Jobs was a visionary, a brilliant innovator who reshaped entire industries by the force of his will, a genius at giving consumers not only what they wanted, but what they didn't yet know they wanted.

He was also a world-class asshole.

Walter Isaacson's best-selling biography of Jobs offers a revealing look at what the author has called "good Steve" and "bad Steve." Good Steve was brilliant, charismatic, a champion for excellence, an alchemist who turned a moribund computer company into gold. Bad Steve was petulant, rude, spiteful, and controlling, a man who thought nothing of publicly humiliating employees, hogging the credit for work he hadn't done, throwing tantrums when he didn't get his way, or parking his Mercedes in handicapped spots. For several years, he even denied the paternity of his daughter so that the child and her mother had to live on welfare.

The ease with which people can possess astonishingly contradictory qualities is one of the mysteries of human nature; indeed, it's one of the things that separates humans from, say, an Apple computer. Every one of the components that makes up an iPad is essential to the work it produces. Remove one part and the machine no longer performs its job, and not even the Genius Bar can fix it. But humans are full of qualities that are in no way integral to their functioning in the world. Some aspects of personality have little or no bearing on whether a person performs well, and not a few people succeed in spite of their darker qualities. You can be a genius and an asshole, but the two aren't necessarily causally linked. In fact, there's a strong body of evidence to suggest that there are plenty of assholes who aren't geniuses at anything other than ... being assholes.

The next batch of business books: The 7 Habits of Highly Effective Assholes, The One-Minute Asshole, and Who's The Asshole Who Moved My Cheese?

But such subtleties may be lost on CEOs, middle managers and wannabe masters of the universe who are currently devouring the Steve Jobs biography and thinking to themselves: "See! Steve Jobs was an asshole and he was one of the most successful businessmen on the planet. Maybe if I become an even bigger asshole I'll be successful like Steve."

This sort of flawed thinking -- call it asshole logic -- isn't something that's necessarily endorsed by Jobs's biographer.

"(Jobs) was not the world's greatest manager," Walter Isaacson said in a recent interview with 60 Minutes. "In fact, he could have been one of the world's worst managers."

But asshole logic, not surprisingly, tends to ignore facts that don't sanction one's own assholery. This distorted reasoning was already prevalent before Steve Jobs's death, and is only likely to spread as Isaacson's biography closes in on becoming the best-selling book of 2011. Five years ago, when Stanford professor of management science and engineering Robert Sutton was researching his book, The No Asshole Rule: Building a Civilized Workplace and Surviving One That Isn't, he ran across a disconcerting number of Silicon Valley leaders who believed that Steve Jobs was living proof that being an asshole boss was integral to building a great company.

Sutton's counter-thesis was that assholes--which he defined as those who deliberately make co-workers feel bad about themselves and who focus their hostility on the less powerful--poison the workplace and induce qualified employees to quit and are therefore bad for business, regardless of the asshole's individual talent or effectiveness.

When Sutton published an article in the Harvard Business Review advancing his theory, he was amazed at the reaction. He had published other articles in the Review, many of them longer and better researched, but nothing provoked the response that his asshole article did. Sutton received well over 1,000 emails, and gathered countless horror stories, including one about a worker undergoing chemotherapy whose boss told him he was "a wimp and a pussy." How do you create an “Apple-like” culture that drives consumer growth?

What an asshole!

Sutton decided to expand the article into a book, and wound up interviewing dozens of Silicon Valley leaders and insiders. When Sutton would advance the notion that assholes are bad for business, one person after another had the same reaction: "What about Steve Jobs?"

"Even people who worked with Jobs told me that they'd seen him make people cry many times, but that 80 percent of the time he was right, " says Sutton. "It is troubling that there's this notion in our culture that if you're a winner, it's okay to be an asshole."

So many people advanced Steve Jobs as evidence that asshole CEOs build better companies that Sutton somewhat reluctantly included a chapter in his book on "The Virtues of Assholes," with Steve Jobs as Exhibit A. There is some evidence that "status displays" by aggressive bosses can motivate workers and give slackers a kick in the pants. And effective jerk bosses usually aren't assholes all the time, they're able to turn on the charm when the situation demands it, something Steve Jobs, by most accounts, was very good at doing. And it helps for companies to have skilled subordinate executives that are good at cleaning up after the Asshole-in-Chief, much like the sad-faced men carrying shovels who walk behind circus elephants.

But Sutton's book makes clear that for the most part, assholes are bad for the bottom line, to say nothing of the human toll they exact. There are plenty of very successful companies that aren't led by assholes - Google, Virgin Atlantic, Procter & Gamble and Southwest Airlines among them. Likewise, there are legions of assholes who lead companies that aren't successful, in part due to their own bad behavior.

With the death and canonization of Steve Jobs and the emergence of the Jobs biography as a kind of sacred text for managers, the ranks of bosses who see Bad Steve's nastier traits as something to imitate is liable to swell. It's unlikely the book will make despots out of thoughtful, fair-minded middle managers. It's far more probable that it will turn bosses who are already assholes into even bigger assholes, raising the temperature of the worst actors so that they become that most combustible of workplace figures, the flaming asshole.

Already, the web is full of articles that hold up Steve Jobs as the model of how to lead and succeed in life, with titles such as "Ten Leadership Lessons from the Steve Jobs School of Management" and "21 Life Lessons from Steve Jobs." Most of these works prefer to focus on Good Steve, but it may not be long until business book authors hone in on the timeless lessons to be drawn from Bad Steve's asshole ways. The titles write themselves: The 7 Habits of Highly Effective Assholes. The One-Minute Asshole. Who's The Asshole Who Moved My Cheese?

The fact is, Steve Jobs didn't succeed because he was an asshole. He succeeded because he was Steve Jobs. He had an uncanny sixth sense about what consumers wanted, an unmatched ability to adapt existing technology and turn it into something new, and a commitment to quality that turned ordinary Apple customers into fans for life. Being an asshole was part of the Steve package, but it wasn't essential to his success. But that's not a message most of the assholes in the corner offices want to hear.via theatlantic.com

 

Speaking  

As the CEO and founder of InnoThink Group, Jim can help your organization enhance the strategic innovation and competitiveness of your business policy and strategy, with an emphasis on increasing top line growth.  

 If you’re interested in having Jim speak at your next event, simply use this form to send us your details and speaking requirements, and we’ll be in touch shortly. Or you may call us at 719-649-4118.  

 

 

 

How to Use Innovation Design to Drive Innovation

Designers must deliver the orchestration of the total experience with a brand, product, or service or face irrelevancy

 

In a previous era, all the talk was of strategy, strategy, strategy. More recently, it's been innovation, innovation, innovation. As design thinking seems poised to sweep away some of today's celebrated innovation practices, we must be wondering what new provocation is on the horizon. Relax, I'm not planning to conjure one up.

For those of us on the design consulting side of the business, it has not exactly been a smooth ride lately. But then again, I can't say that I ever remember it being all that smooth, even when the demand for all forms of basic design and new production capability was sky-high.

Having lived one career on the corporate design side of the consumer-products industry and now a good part of another on the consulting side, I've seen the ascendancy of design as a profession and the movement of design toward business competency. At the outset, designers were about style and the creation of bright shiny objects, and we dutifully manned our post at the last decoration station on the way to the marketplace.

Today, there are arguably two design strategies in the marketplace. You either succeed as the low-cost producer, or you successfully differentiate your offering by design in a relevant, meaningful way that is valued by shoppers, consumers, and sellers. As such, the theoretical role of design in business is relatively uncomplicated and straightforward.

Design in Business

The complications come with these two questions: Where does the core idea around a differentiated, relevant, valued offering come from? And what is its relationship to this thing we used to call design? You know—the bright shiny objects.

In our practice, we refer to the former as innovation strategy, and to the latter as design strategy. Somewhere in between resides the opportunity for brand strategy, and we hope to create a system in which there is a seamless flow from ideas to brand meaning and, finally, to how that brand or product or service is expressed and communicated.

Putting all three aspects of this brand-building practice together provides validity in thinking about design as one of the primary idea generators for the creation of viable business platforms. Assuming that the manifestation of a business offering is realized in the context of a brand, that brand requires meaning, a defined expression, and then, given some success, a plan for continued opportunity development that sustains and grows the business.

How to Innovate

True innovation requires the adoption of a belief system that sometimes must prevail in the face of other data metrics. Read up on the great inventions and business wins and you will note that at the core of most of them lie belief, dedication, and the passion to succeed. Today's business leaders are often too afraid to move ideas forward without ironclad data proofs that they will be successful. All too often, they are the losers. Use your head, listen to your heart, and feel what's in your gut.

As long as the human spirit and the marketplace lives on, I'm sure we will be inventing and innovating. Innovation is the commercial side of discovery and invention. Change is a huge driver of both discovery and invention. The world changes around us and we discover new things and we observe change and invent new things to deal with change.

If designers are content to function as purveyors of bright shiny objects, they will likely fade into obscurity. On the other hand, if they step forward and deliver the orchestration of the total experience with a brand, product, or service in the context of our changing environment, their future, too, looks bright. via businessweek.com

Speaking 

As the CEO and founder of InnoThink Group, Jim can help your organization enhance the strategic innovation and competitiveness of your business policy and strategy, with an emphasis on increasing top line growth.  

If you’re interested in having Jim speak at your next event, simply use this form to send us your details and speaking requirements, and we’ll be in touch shortly. Or you may call us at 719-649-4118. Thank you!