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Has IM Innovation Peaked?







Has IM Innovation Peaked?

Has IM Innovation Peaked? 05/07/2004 05:39 PM

Internet News May 7 2004 10:03PM GMT




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Has IM Innovation Peaked?

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Has Microsoft peaked?


Has Microsoft peaked? 07/07/2004 01:17 AM
Microsoft Corp.'s business ambitions have never wavered. Microsoft was founded in 1978, went public in 1987, and has since grown to become the world's largest technology company and one of the world's largest publicly traded companies. It has as an enormous cash balance of around $55 billion on its balance sheet and 93 percent share of the consumer software market. Investors typically regard MSFT stock as a no-risk investment with a stock price that will keep going up. However, that is not the case.

Yes, Microsoft has a ton of cash on the balance sheet. But it's not balance sheet cash or market share that propels a stock price upward. It's growth. And growth leveled off at Microsoft about 18 months ago, when the company went ex-growth and ex-cash.

has the thong meme peaked?


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Flu Epidemic Likely Has Peaked in Most
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Flu Epidemic Likely Has Peaked in Most
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Voice has peaked, the future is data


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That's entertainment

IT Investor's Journal: Has Microsoft
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IT Investor's Journal: Has Microsoft
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Microsoft Corp.'s business ambitions have never wavered. Microsoft was founded in 1978, went public in 1987, and has since grown to become the world's largest technology company and one of the world's largest publicly traded companies. It has as an enormous cash balance of around $55 billion on its balance sheet and 93 percent share of the consumer software market. Investors typically regard MSFT stock as a no-risk investment with a stock price that will keep going up. However, that is not the case.

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How much innovation is enough?


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The Innovation Webl0g


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innovationtools.com/weblog/innovation-weblog.asp
track this site | 4 links


Who Cares about Innovation?


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Innovation as Collaboration


Innovation as Collaboration 02/01/2005 09:04 PM
smartcarA few years ago a furniture company flew me down to their headquarters to talk to them about innovation, and to get my comments on a new product that they'd developed for the professional services industry. This was a company that had been honoured for years as one of America's most innovative companies, so I wasn't sure how much I could help them. They ushered me first into the R&D department where I met with some very creative individuals who obviously knew a lot about their business, and about product innovation. The department featured a giant furniture 'playroom', stocked with a variety of furniture components, where creative minds could serendipitously experiment and build makeshift prototypes on the fly. I was impressed.

Being a consultant, the first question I asked them was about their innovation process. Specifically, I asked, how were customer needs, complaints and ideas routed from the front-line customer contacts (the sales and marketing people) to R&D. I got blank stares. New product ideas were developed in the laboratory, it seems, and the only customer input was from surveys and focus groups once the R&D people already had something to show them.

An interesting discussion ensued. The gist of it was the company's argument that customers, not being experts in furniture, don't know what they want until they're shown something. If you were to ask them what they want, they'd just respond "what can you offer me?" My response was two-fold:

First, I said, you shouldn't be asking people what furniture they want, because  it's not a piece of furniture that they're looking for, necessarily, it's the attributes and benefits that the furniture offers that people want: Comfort, orthopedic support, mobility, prestige, 'workability'. I described a company I had recently read about that had abolished chairs. All the work surfaces had been raised to a comfortable work-level while standing, and each employee had been given a lightweight, personal 'memory cushion' to stand on that clipped to their belt, and a pair of personal orthopedically-designed shoes designed to make standing for long periods comfortable. In this company, people were constantly on the move and an enormous amount of time was spent booking meeting rooms. Now, the entire office could be configured as ad hoc meeting areas, chairs (with their high attendant cost and floor-space needs) could be eliminated, and mobility was optimized. People even found that they were more productive standing up and constantly moving around. This was a company that understood furniture was a means to an end, and the end for them was mobility and flexibility, so they 'invented' tools (furniture, cushions and shoes) that had those attributes.

Secondly, I added, you need to use an iterative process to elicit what people need, want and would use, a process Imperato and Harari (in their book Jumping the Curve) call "Thinking the Customer Ahead". This process entails a combination of visioning, asking a lot of 'what if' questions, and generally helping customers imagine the future state of their own organizations and needs, and how they would react if something new were suddenly available. This is an inherently collaborati ve process, as much as it is an innovative one. Just as asking people 'what would you like to see on the company intranet?' is likely to produce unimaginative (or no) answers, so would asking customers what furniture they need. But if you helped them to envision what the future of their business would look like, and then worked from that vision to ask an iterative set of 'what if' questions to elicit the kinds of furniture they could imagine using effectively in that future environment, and then collaboratively work with them to 'design' it, then you'd be getting somewhere.

As it turned out, the new product they had asked me to evaluate was designed to solve a problem in the professional services industry that had been widely talked about for a generation. Now they had an answer, but it was an answer to yesterday's problem, for which effective work-arounds had been found and were still evolving. And they had designed a product that had several critical inconvenience factors that were show-stoppers, and which they could have known about by spending more time talking to customers much earlier in the process.

One of my creative suggestions to them, as a customer, was that if they really want to sell their top-of-the-line ergonomic chairs to CEOs, they should give them away free to hotels and conference centres for their meeting rooms, where CEOs hang out and where the chairs are notoriously uncomfortable. The proviso would be that the name of the chair be conspicuously emblazoned on each chair. I don't think they ever took me up on the idea. I still think it would work, and pay for itself in no time.

Specialization has created intellectual and imaginative silos in organizations, and a recent Wharton study written up in S+B Magazine has found, as I did on that trip, that these silos are a huge obstacle to innovation: "The most effective product development and commercialization processes encourage dynamic communication and idea sharing among engineers, marketers, and customers...Failure to incorporate the customer’s perspective often seriously limits the potential financial and competitive value of corporate innovation...Often, engineers are tucked away so far within a company that they don’t see firsthand what customers really need."

Other key findings of the study:
  • over-concentration on technology and under-emphasis of the emotional appeal of products leads to market failure
  • better products result when employees are themselves customers of the product
  • 'anthropological research' -- visiting customers to see how they actually use (and mis-use) products can provide huge insights on need and innovation opportunities
  • when entering new markets, having local partners 'on the ground' can help tweak products to meet needs that are unique to that new market
  • using cross-functional teams and having the R&D people 'get out more' can help reduce 'customer blindness'
  • spreading R&D efforts around the world can help global companies enhance their 'environmental scan' and tap into ideas and adaptations that may not be apparent at head office
  • surveys that gather data on customer behaviour are insufficient -- it's more important to know why customers do what they do, to determine their true wants and needs, and this usually requires face-to-face contact and collaborative effort to determine
  • it's important to understand customers' aversion to change, and annoyance with having too many choices, when developing products
  • key qualities needed of the facilitators of dialogue between R&D, sales and customers: humility and curiosity
This study focused mainly on new product innovation, but the same need for collaboration with all the departments of the company, and with customers as well, applies equally to other types of business innovation. I like the Doblin Group's Ten Types of Innovation, an excellent way of parsing all the innovation opportunities open to a company:
  • Business model: How you make money (e.g. Dell's pay-in-advance for a custom-made PC model).
  • Networks and alliances: How you join forces with other companies for mutual benefit  (e.g. Sara Lee sticking strictly to branding and outsourcing all manufacturing)
  • Enabling process: How you support the company's core processes and workers (e.g. Starbucks' premium wage and benefits packages to attract superior staff)
  • Core processes: How you create and add value to your offerings (e.g. Wal-Mart's reinvention of retailing as shelf-space leasing)
  • Product performance: How you design your core offerings  (e.g. the Mercedes Smart Car's unique and imaginative attributes -- pictured above -- pick up the new Feb/05 Fast Company for a fascinating discussion of why you won't see it in the US)
  • Product system: How you link and/or provide a platform for multiple products (e.g. the Microsoft integrated productivity suite)
  • Service: How you provide value to customers and consumers beyond and around your products (e.g. Singapore Airlines' thoughtful and pampering extras)
  • Delivery Channel: How you get your offerings to market (e.g. Martha Stewart's multi-media ways of getting her 'home' stuff to your home)
  • Brand: How you communicate your offerings (e.g. Absolut vodka's "theme and variations' advertising concept)
  • Customer experience<>: How your customers feel when they interact with your company and its offerings (e.g. the Harley Davidson owners' community)
Collaboration within company departments and with customers is absolutely essential to the success of any of these ten types of innovation. My sense, however, is that in most large organizations collaboration (as opposed to mere coordination) is antithetical to corporate culture, modus operandi, and hierarchical structure. That's why many innovation advisers think innovation is best done in a business unit separate from the main operating unit, where emphasis is inevitably on protecting the status quo.

And that's also why I was surprised to see the results of a new study, by KPMG and Ipsos-Reid, of Canada's most innovative companies. Only three of the top 10 are small-to-medium sized businesses (Research in Motion, Westjet Airlines and Ballard Power Systems). The others include four of Canada's five largest telecom and broadcasting firms, its largest grocery chain, its largest engineering firm and its largest software distributor. And while this 'bias to big' is less noticeable in the Innovation category than in the overall Most Admired rankings (which are top-heavy with banks), it struck me as peculiar -- until I read how the winners had been selected: Only the CEOs of Canada's leading (read: biggest) corporations got to vote. It's not surprising, then, that they picked almost exclusively other large corporations.

I wonder what the answers would have been if they had asked customers?

Beers to innovation


Beers to innovation 08/10/2004 05:03 AM
USA Today Aug 10 2004 9:03AM GMT

Adjusting for Innovation


Adjusting for Innovation 07/30/2004 05:19 PM
If research and development is an investment, why not treat it as such?

The Meaning of Innovation


The Meaning of Innovation 12/19/2004 03:12 PM

I'm at a "Global Innovation Outlook" event organized by IBM in New York. Lots of great folks here, and -- halleluja! -- open WiFi in the auditorium at Rockefeller University. It's too early to pass judgment on the program, but IBM is asking the right questions in exploring the nature of innovation in today's world.


iTunes Innovation, Please


iTunes Innovation, Please 02/11/2004 09:46 PM
While I bellyache about how Apple is too busy developing the iTunes Music Store to add features to iTunes, I also want to point out that some of the innovations that were added to iTunes as a part of the Music Store could really improve iTunes as a whole. (Macworld via MyAppleMenu)

The space of innovation


The space of innovation 09/07/2004 12:15 PM
Interesting discussion at slashdot about a blog system written on top of Google Gmail. Is it permitted? Is it frivolous? Is it in Google's interest? These are all fair questions, but the main point I think is: Open up a capability and people will do the unexpected with it....

Innovation Awards


Innovation Awards 01/03/2005 08:04 AM
How do you quantify corporate imagination? Meet the top companies on the first-ever Fast Company/Monitor Group Innovation Scorecard -- firms where new ideas are a competitive advantage.

Innovation Network


Innovation Network 04/29/2004 05:03 AM
Innovation Network
http://www.innonet.org/

They provide program planning and evaluation consulting, training, and Web-based evaluation tools to nonprofits and funders across geographic and programmatic boundaries. They want to make evaluation accessible to all nonprofits, so they have the knowledge and skills to:

* Manage their internal matters, programs, and services effectively;
* Gain a stronger understanding of what is happening in their programs, and how those programs are affecting people and communities; and
* Collectively raise a strong voice in funding and policy decisions.

Democratizing Innovation


Democratizing Innovation 04/04/2005 07:28 PM

Eric von Hippel has released a PDF version of his book Democratizing Innovation under a Creative Commons license. Hippel explores the growing importance of innovation by users, and sharing of innovations by users.

The book is dedicated to "all who are building the information commons." Let's hope that's you!

Via Boing Boing.


Innovation through Integration


Innovation through Integration 04/08/2005 08:17 PM
danah boyd: Craigslist housing + Google Maps = brilliant

End the FCC, begin innovation


End the FCC, begin innovation 06/07/2004 02:14 PM

I try not to fall for Declan's grandstanding, but his piece on why the FCC should die is spot on.

What it means is returning to bottom-up law rather than the top-down process that has characterized telecommunications for the last 80 years.

Maybe it's the programmer in me talking but I think the Internet and unlicensed wifi spectrum show that unregulated spaces produce the most innovation and create new markets for technology and information. In many ways, the FCC has spent the last few decades slowing technology progress and most recently is now in the censorship game, which doesn't make any sense at all.


Top UK innovation prize for IBM


Top UK innovation prize for IBM 06/11/2004 06:43 AM
IBM software described as the oil of e-commerce has won the MacRobert engineering prize.

Google Innovation?


Google Innovation? 11/10/2003 11:40 PM
JR tries to remind us of history in light of Google's recent "innovation": You see, Hotbot was the first to introduce a tool like this. In fact HotBot had released such a tool quite a while ago, and at least they admitted that the bulk of it came from Dave Bau's tool. It's too bad the press covering this stuff has such a short memory....

Innovation That Leaves No One Behind


Innovation That Leaves No One Behind 05/17/2004 03:00 AM
Business Week May 17 2004 6:23AM GMT

Gmail innovation


Gmail innovation 04/17/2004 04:47 AM
Jeremy doesn't see the big deal with Gmail. "Oooh, a whole gigabyte. Who cares?" he asks. Do you honestly expect to see other large (and even mid-tier) web mail providers not increasing their offerings to match or surpass those of Gmail? Without the competition from Gmail, why would they have? Isn't extra space what their users pay them money for? So we've got threading (not new) plus virtual folders (not new) in a single mail interface. Well, stop the presses!...

The Pace of Innovation


The Pace of Innovation 02/19/2003 08:08 PM
Kendall Clark muses on the apparent stall in innovation in XML technology -- is it a sign of failure, or a symptom of success?

Imitation is out, innovation is in


Imitation is out, innovation is in 11/14/2003 01:19 AM
Sunday Times South Africa Nov 14 2003 0:13AM ET

Innovation Contest


Innovation Contest 02/12/2003 12:00 AM
One of my co-workers, JR, remarks on an innovation contest at work. I'm glad to know I'm not the only one who wasn't sure what to make of the announcement. The initial announcement sounded a bit fishy for several reasons....

Commoditization And Innovation - IT Does
Matter


Commoditization And Innovation - IT Does
Matter
05/06/2004 03:49 PM
Last year there was a long and loud discussion all around the tech industry concerning Nichola s Carr and his assertion that IT doesn't matter any more, since it's become a commodity. Now, knowing that controversy sells books, he's gone on to write a full length book, < i>Does IT Matter? Information Technology and the Corrosion of Competitive Advantage. Professor Hal Varian, in the NY Times has responded brilliantly to the arguments Carr makes. Carr's assertion (often misunderstood) is that IT is becoming a commodity, and as such, offers no sustainable competitive advantage to companies. Basically, the argument is that everyone can easily have the same IT setup, so it should be looked on in the same way as electricity: a necessary component, but one that gives no particular advantage. Varian makes the point that we've discussed here in the past: commoditization, by itself, does not mean the end of innovation or the end of business opportunities. In fact, it can be the exact opposite. Commoditized products are inputs into innovation. The fact that they are commoditized actually means it's easier and cheaper to use them innovatively to gain a competitive advantage. In other words, it's about taking advantage of the fact that they are commoditized and realizing that they're now resources and not end products themselves. The same argument, by the way, could be used in the entertainment industry - but that's a story for another post. Still, I think the real stumbling block with Carr is his insistence on "sustainable competitive advantage." Let's face it, sustainable competitive advantage is a myth. There is nothing any company can do that can't be copied eventually (or leapfrogged). Competitive advantage is always fleeting. What a good company recognizes, however, is that the way you build the idea of a sustainable competitive advantage is by constantly innovating, so that your fleeting competitive advantages add up to a sustainable one. One way to do that is to recognize commodities for what they are: opportunities for new innovation, and not something to be pushed aside as useless.

Amercian Innovation Is Now In Danger,
Except...


Amercian Innovation Is Now In Danger,
Except...
07/31/2004 10:28 PM
Sir Harold Evans: We've gotten fat, dumb and happy. Obviously, we still get someone brilliant like Steve Jobs -- and the iPod. I think [the iPod] is marvelous.

Software innovation is dead


Software innovation is dead 02/10/2004 02:48 AM
Software innovation is dead. All that's left is compatibility fixes, security patches, and minor-version-number incremental improvements. The problem isn't a lack of ideas; it's a lack of motivated developers.

Innovation in games needed


Innovation in games needed 07/24/2004 01:19 AM
News.bbc.co.uk - Fri Jul 23, 02:43 pm GMT

IBM UK in running for £50k
innovation purse


IBM UK in running for £50k
innovation purse
05/24/2004 07:38 AM
The Register May 24 2004 11:47AM GMT
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