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Back in 2006, I keynoted the Society of Cable Telecom Engineers at their annual conference in Tampa. At the time, YouTube was only just beginning to have an impact, and social networking was still in a nascent stage. It was January — Twitter wasn’t even around!

My job was to alert them that forthcoming trends would mean that they would be  faced with the need to accelerate the bandwidth on their networks. I spoke to the trends I predicted in my book of 1999, Light Bulbs to Yottabits, which took a look at the forthcoming world of online video.


My job, as opening keynote, was to get them in the right, innovative frame of mind to deal with an upcoming tsunami of change.

I ended up writing an article for Broadband Magazine, on my keynote theme, Are We Thinking “Fast” Enough? I recently dug the article out the other day with respect to another upcoming talk within the industry.

It still makes for good reading today, starting with the observation that “in this era in which new developments and technology are coming to the market faster than ever before, everyone must become an innovator, whether it be with new business models, skills partnerships or customer solutions.”

Some of the key points I raised are even more critical today:

  • Innovation has moved from the corporate to the collective, a trend that is causing absolutely furious rates of discovery.
  • This rate of scientific advance is such that a world of yottabits and zetabits is going to arrive faster than you might think,
  • Things are happening so fast that some industries are beginning
    to witness the end of the concept of the product life-cycle
  • Rapid innovation and technology development means that new competitors can now come into a marketplace and cause fundamental, significant and long lasting change at the drop of a hat
  • Rapidly evolving technology is resulting in an increasing shortage of critical skills

Run through that list, and ask yourself if that is your industry situation today.

Read the full article below.

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Credit Union Magazine just ran a great article on my keynote yesterday in Las Vegas for Drive 17, the annual conference from CU Direct on trends in the automotive lending space for credit unions.

Self-driving cars, drone technology, Apple Watch, and even FaceTime.

It’s technology we see depicted in “The Jetsons,” a cartoon from 1962 that depicted the life of a futuristic family. But we’re already seeing much of the technology today, more than 40 years before the cartoon takes place in 2062.

It’s staggering to think how quickly the world around us is changing,” says innovator and futurist Jim Carroll, who addressed CU Direct’s Drive 17 Conference Wednesday in Las Vegas.

The technology in The Jetsons is just another reminder that credit unions need to innovate and not only develop new products, but also transform to keep up with the speed of change, Carroll says.

Given the fast pace of change, more than 80% of conference attendees believe their current business model will not stay the same in the next 10 years due to the significant disruption.

We need to deal with the innovation killers which hold us back from pursuing the opportunities of the future. The future is coming at us with a greater intensity and great speed,” Carroll says. “We need to think big, start small, and scale fast.

Carroll offers credit unions five strategies for successful innovation:

1. Think big

Innovators need to make big, bold decisions to be transformative. This is the only way credit unions will be able to counter the impacts that disrupters, such as fintech companies, have, Carroll says.

Think of Tesla, Carroll says, which has transformed the auto industry by manufacturing vehicles on demand and have placed their dealerships in retail shopping areas rather than in stand-alone structures. Some 400,000 people have signed up for these vehicles, he adds.

2. Presume that everything will speed up

Credit unions are not the only industry struggling with the speed of technology.

Technology is rapidly changing in vehicles, says Carroll, who believes Siri or Alexa buttons, augmented reality screens, vehicle-to-vehicle communication, and payment technology embedded in the dashboard may be features in vehicles by 2020.

For credit unions, think about how biometric scans can be used at ATMs.

3. Align to Moore’s Law of innovation

This law says the processing power of a computer chip doubles every 18 months. Technology is constantly changing and is becoming embedded in more items, such as garage doors, ceiling fans, and even grills, Carroll says.

Hyperconnectivity is becoming the rule.

Credit unions need to be aware of the expectations members have for personalization, their use of technology, and a desire for real-time support or interaction when needed.

You need to be prepared to innovate quickly,” he says.

4. Align changing business models and consumer behavior

Mobile devices have a huge influence on people’s purchasing and financing decisions. Research shows the average consumer scans 12 feet of shelf space in a second, and 80% would leave a store if they must wait more than five minutes to pay.

Determine ways to grab your members’ attention and provide solutions faster, in addition to providing a way for members to interact online, Carroll says.

5. Realign to the impact of generations

Recognize how younger generations live their lives. Don’t cling to a routine or process just because that’s the way your credit union has always operated.

Millennials, for example, have been weaned on technology, speed, and innovation, and are open to transformations and changes that take this into account, Carroll says.

 

One of my key themes through the years has been that “faster is the new fast” — that the biggest challenge that organizations must face is how to keep up with the high-velocity economy.

I’m now observing that in many markets and industries, the pace of change is so fast that we need to put in place a senior executive whose sole area of responsibility is ensuring that the organization can keep up with ever-increasing rates of change. Let’s say — a Chief Momentum Officer.

Organizations need to adapt to all kinds of different issues when it comes to the velocity of change: rapidly changing business models, the emergence of new competitors, ever shrinking product life-cylces, a faster pace of new product development, furious rates of technological innovation, furiously fast new trends in terms of customer interaction, the decreasing shelf-life of knowledge and the more rapid emergence of specialized skills: the list could go on!

Hence, a need for someone who aligns all of the moving parts of the organization to high velocity change! This individual will carry a number of responsibilities, such as:

  • managing the product innovation pipeline, so that the organization has a constant supply of new, innovative products, as existing products become obsolete, marginalized, or unprofitable
  • managing the talent pipeline, so that the organization has the ability to quickly ingest all kinds of specialized new skills
  • managing the technology pipeline, so that the organization can adapt itself to constantly improving and ever-more sophisticated IT tools that will help to better manage, run, grow and transform the business
  • maintain and continually enhance brand and corporate image; as I’ve written here many times before, brands can become “tired” and irrelevant if they aren’t continually freshened and refreshed
  • ensuring that the organization is continuing to explore new areas for opportunity, and that it has the right degrees of innovation momentum
  • that the business processes and structure of the organization are fine-tuned on a continuous basis so that it can keep up with all the fast-change swirling around it
  • ensuring that a sufficient number of “experiential” programs are underway with respect to product, branding, markets, and other areas so that the overall expertise level of the organization is continually enhanced

In other words, the CMO has two key responsibilities:

  • keeping a fine tuned eye on the trends which will impact the organization in the future, and which will serve to increase the velocity that the organization is subjected to and;
  • keeping their hands on the appropriate levers throughout the organization such that it can keep evolving at the pace that these future trends will demand.

I don’t know if that makes perfect sense, but I think its a good issue to think about.

One recent client engaged me for a talk for their global team, with the keynote title “Achieving Agility: Aligning Ourselves for an Era of Accelerating Change”. That’s a good example of how I outline the attributes for success in a world of high velocity change. With that, I focus on how organizations and leaders must incorporate four key capabilities: agility, insight, innovation and execution.


Corporate agility concept is perhaps the most critical: organizations must presume that the rate of change today is so fast that product lifecycles are collapsing, business models are relentlessly shifting, and customers are unforgiving and fleeting. To name just a few key trends!

Agility implies that we must innovate and adapt based on rapidly changing circumstances, on a continuous basis.

How do we do that? By adopting several key guiding principles that form the basis for all corporate strategy and activities going forward:

  • plan for short term longevity: No one can presume that markets, products, customers and assumptions will remain static: everything is changing instantly. Business strategies and activities must increasingly become short term oriented while fulfilling a long term mission.
  • presume lack of rigidity: Many organizations undertake plans based on key assumptions. Agile organizations do so by presuming that those key assumptions are going to change regularly over time, and so build into their plans a degree of ongoing flexibility.
  • design for flexibility : In a world of constant change, products or services must be designed in such a way that they can be quickly redesigned without massive cost and effort. Think like Google: every product and service should be a beta, with the inherent foundation being one of flexibility for future change.
  • build with extensibility: Apple understood the potential for rapid change by building into the iPod architecture the fundamental capability for other companies to develop add-on products. Think the same way : tap into the world. Let the customer, supplier, partners and others innovate on your behalf!
  • harness external creativity: In a world in which knowledge is evolving at a furious pace, no one organization can do everything. Recogize your limits, and tap into the skills, insight and capabilities of those who can do things better.
  • plan for supportability: Customers today measure you by a bar that is raised extremely high — they expect you to deliver the same degree of high-quality that they get from the best companies on the planet. They expect instant support, rapid service, and constant innovation. If you don’t provide this, they’ll simply move on to an alternative.
  • revisit with regularity: Banish complacency. Focus on change. Continually revisit your plans, assumptions, models and strategies, because the world next week is going to be different than that of today.

To me, that’s what agility is all about!

As with anything, the opportunity around the idea of the ‘smart home’, and the reality of what will transpire, varies to a large degree. We are in early days yet!

That was the essence of an exchange I had with a potential client in the home/condo construction market; they were looking at me for an executive offsite concerning their plans in this space, and wanted a senior level executive session that outlined opportunities with smart home construction in the future.

My key goal was to get across to them that a smart home doesn’t just involve throwing in some Internet-connected devices;  it’s not just about the Internet of Things; there is a lot more potential, and the scope of the opportunity is pretty significant in the long term. Given that, they really needed to take a substantive approach that involved not just short term goals but some long term thinking.

Here’s what I outlined:

  1. It”s bigger than you think. The smart home of the future will not only play a role in security and energy, but also also a role in economic development, healthcare virtualization, the reengineering of local energy grids and much, much more
  2. We’ve only just begun. Major organizations, such as appliance and other home device manufacturers, are only just starting to understand where they can go with the smart home. This is outlined in my recent post, The 11 Rules of IoT Architecture – they are coming to understand that just as Tesla is building cars that can be upgradable, they can play a role in smart homes that will be upgradable and changeable over time. That’s a pretty big scope of opportunity.
  3. The energy side is much more than just connected thermostats The real smart home of the future will be designed with major energy implications in mind. This will involve @ home energy generation, as well as sharable energy systems and support for local community micro-grids. Catch my video on this, Will the Energy Industry be Mp3’d?
  4. AI will play a big role, but no one is sure what that means yet. We are in early days with home AI devices such as Amazon Alexa and other intelligent assistants. Alexa and other devices have caught the attention of the innovators; someone out there is busy engineering future solutions that are barely an idea yet. We don’t know where this aspect will take us!
  5.  Virtual healthcare in the home is a bigger component of the smart home than you realize. Bioconnectivity – the virtualization of healthcare, is massive. The hospital is being reengineered to incorporate the monitoring of patients from afar. Big, bold thinking in the seniors care and other industries will lead to transformation of the very essence of what we think a hospital is – because the home becomes a part of the hospital. Look to the MedCottage for guidance on the opportunity with this issue.
  6. Making it work is pretty complex. An API has been built, but people are only just beginning to use it. Head over to the site, If This Then That. It’s at the vanguard of where we can go with this massive form of hyperconnctivity. It involves a series of rules -if this device does this, then do that. Talk to your phone to turn on your thermostat. Use your phone to see where you are and define a rule if your garage door should open. The number of companies joining IFTT is staggering — it is likely the World Wide Web for the Internet of Things!
  7. Existing players aren’t necessarily the major players. Google was big and early into the game with NEST, but don’t expect that big organizations like GE, Whirlpool and others will easily give up the potential market. While big companies aren’t necessarily the best innovators, I’m seeing a lot of deep, substantive thinking in these organizations as to the real nature of a smart home eco-system.
  8. The economic implications are huge. In the 1950’s, the modern suburb defined the future of economic relocation – companies made decisions based upon where the employees might live. In the future, smart communities wired by smart infrastructure, particularly those supporting the nomadic worker, will have an economic leg up. Wild card: self-driving cars and economic success.
  9. Architectural / design issues are only just being explored. If we can build ultra-smart, energy efficient, secure homes, have we yet hit an understanding of the design opportunity? In this area, think about the Jetsons – it really provides guidance!
  10. The skills issues are massive! I had one of the first Internet enabled thermostats about 17 years ago. My HVAC contractor flipped out when he saw it, complaining he didn’t know how to wire Ethernet stuff. I said that’s ok, my teenage son will do it — and he did! Its going to take a lot of knowledge re-skilling for the future of the smart home!

For each of these areas, I’ve spent a lot of time in the last 20 years. By way of examples:

  •  I’ve spent time with many of the companies in the home energy sector; all of Honeywell, Trane, and Lennox have had me in for CEO level events or dealer meetings
  • with the era of smart appliances, I just keynoted a session at Whirlpool/Maytag on the implications and opportunities of the Internet of Things.
  • in the energy field, I’ve spoken about the future of micro-grids and shared energy for the CEO of PG&E, as well as many global energy conferences
  • I’ve done multiple keynotes around the future of virtualized, community oriented healthcare, most recently, for several thousand folks in the seniors care industry
  • on the economic implications , lots of talks — I’ve just been booked by the Western Nevada Economic Development Association for a keynote around this theme, by way of example
  • on the architectural / design issues, I recently had a keynote in St. Louis for Alberici Construction…. and others
  • and on the skills issues, a lot of time, including talking about the future challenges for HVAC contractors and others at the WorldSkills conference in Sao Paolo, Brazil!

One of my favourite future phases is from Bill Gates: Most people tend to overstate the rate of change that will occur on a two year basis, and underestimate the rate of change on a 10 year basis. So it is with the smart, connected home. We’re going to be in a different space 10 years from now, but we are only just starting to define that!

Closing comment? Back in the late 90’s, I wrote a monthly column for one of the world’s leading airlines — Canadian Airlines! One of my columns had to do with the smart home of the future. It’s a fun read today – and I was pretty right about the trends going forward! Have a read!

Soon you’ll be programming the drapes
September 1999 – Canadian Magazine
by Jim Carroll PDF

The last few decades have been marked by promised of innovative new technology for the home. The presumption, of course, is that more technology is good for us and that, in the process, our homes will become “smart.” Yet today, as we consider the number of people whose VCRs still flash 12:00, we wonder just how smart our homes have become.

YESTERDAY

Ever since the 1930s, many industries have predicated a variety of fanciful technologies that would find their way into our homes and make our lives much easier. Most predictions are, in retrospect, hilarious.

Perhaps one of the earliest examples was the introduction of the automatic dishwasher at the 1939 World’s Fair in New York City. Westinghouse presented a dishwashing contest between Mrs. Modern (using a Westinghouse dishwasher) and Mrs. Drudge (cleaning her dishes by hand). At the close of the contest (you know who won), the moderator commented that in addition to losing, Mrs. Drudge was not nearly as “neat and refreshed as when she started.” Yes, technology would make us feel better!

Washing dishes seemed to be a favourite theme of the World’s Fair: some 25 years later, the 1964 Fair featured the Norge Dish Maker. The appliance washed and dried plastic dishes – and then ground them up into tiny pellets, which it would then mould them into new plates, cups and saucers!

Walter Cronkite got in on the act, appearing on March 12, 1967 in At Home 2001, a half-hour show about the nature of the home at the dawn of the new millennium. He explained, for example, the duties of the host: “When a guest arrives, he just pulls out his inflatable chair – a small pressurized air capsule would inflate it and it would be ready for use. At the end of the evening he’d just pull out the plug and put the deflated chair back into his little bag.” Need to cook for the guests? Simply reach for the ultimate in convenience food. “A meal might be stored for years and then cooked in seconds,” he said, without a trace of scepticism.

Optimism continued to reign. In 1977, the Vancouver Sun reported on a “domestic android” manufactured by Quasar Industries, which could “serve your dinner, vacuum your rugs, baby-sit your kids and insult your enemies.”

There was a common undercurrent to many of the predictions about the “smart home.” We would have push-button control over everything, a “remote control for the home,” that would allow us to draw the drapes, water the plants, turn down the thermostat, and control virtually every other aspect of the house simply by punching a few buttons.

TODAY

Of course, few of us today have such capabilities – and we wonder if we’d be able to use it even if it were available. After all, how many of us could manage that “remote control for the home” when we find ourselves stymied by the typical 50-button VCR remote control?

The industry is certainly trying to deal with the problem. There is no shortage of ‘smart-home” technology available and apparently some people are buying this stuff – the U.S.-based National Association of Home Builders estimates that, worldwide, some $2 to $4 billion is spent each year on smart-home devices that link security systems, lighting, and entertainment communication systems.

Who buys them? John and Missy Butcher of Chicago, for example. They have spent $100,000 on a home automation system, which means that (if they are in the mood), they can click the “Romance” button on their home automation controller and watch as the curtains are drawn and the lights dim, while listening to music designed to get them in the mood. “Our lives are much easier,” they note.

Of course, we might think, anyone who can spend $100,000 on a home automation system already has an easy life.

TOMORROW

Will the smart home remain largely a concept, an expensive curiosity available only to the richest and most gadget-hungry among us? Likely not. This is one technology that is set to explode in terms of the number of customers it will gain and the practical role it will play in our daily lives. There are several reasons for this.

First, many people now have more than one computer in the home. The computer industry recognizes that linking them together into a home-based local area network is going to be one of the biggest opportunities of the next three years.

We won’t simply be linking the computers in our home. The technology will link all of our devices based on the computer chip into a central control panel, bringing us one step closer to the remote control concept of earlier decades. Three years from now, you may be buying a set of drapes with a microchip. Plug them in, program them – and forget about them.

Second, the emergence of the Internet plays a significant role. Though we think of it as a tool to surf the Web and read e-mail, it is also a technology that will one day link our refrigerator to its manufacturer, notifying the company when the appliance is about to break down – and, in the process, taking us through the next step in home automation.

And finally, there is the ever-decreasing cost of technology. The smart home has always been held back by the fact that the minimum investment was at least $2,000, but that figure is dropping quickly.

And, most significant of all, we’ll barely notice the technology as it sneaks into our home! We’ll be buying appliances, garage door openers, alarm systems and other things for our home, unaware that they contain the necessary intelligence to plug into our home network.

It’s not that we’ll choose to have a smart home – one day, we’ll discover that it’s already smart.

Not quite convinced? Let me quote Walter Cronkite, from that 1967 program. “Sounds preposterous,” he told his audience, with a bit of a smile, “but some people are convinced it will happen.”

In the 1990’s, when e-commerce arrived on the scene, someone thought it would be a good idea to allow you to buy a coffin online.

The funeral industry fought back — after all, they had margins and business models to protect.

Of course, that failed. Today, you can buy a coffin online. (Which begs the question — if you buy it advance, what do you do with it? Stick it in the living room for now and use it as a coffee table?)

Then came Napster, and with it, outright music theft through sharing. Yet at the same time, folks experimented with business models involving the sale or licensing of music via digital music files. The music industry fought against that — they essentially fought a war against the idea of digital media.

How did their battle against the future turn out? Not well — eventually Apple came along with iTunes and a business model that worked. It took a while, but the music companies eventually figured out they had to adapt and align to the future, rather than fight it.

History has a nasty tendency of repeating itself, and legacy companies keep making the same mistakes. So it is with GM and self-driving car technology today. It seems they would rather fight the future than be a full participant in it.

GM thinks that only established car companies should be able to innovate in the self-driving car space. Is GM the new RIAA, fighting the same battle that the music industry tried to fight against digital music files?

The company is busy battling back against the disruptors and upstarts, trying to suggest only established car companies should be able to innovate in the space:

With states seizing the initiative on shaping the future of self-driving cars, General Motors is trying to persuade lawmakers across the country to approve rules that would benefit the automaker while potentially keeping its competitors off the road. ” New York Times, February 23, 2017

In other words GM is doing the same thing that the funeral and music industries did in the 1990’s and early 2000’s.

How do you think this will end up?

Two key points come from this:

  • GM deserves to fail with these efforts. You don’t innovate through legal action on innovation.  Where’s the CEO on this? What type of message does this send to the organization on its innovation efforts? Is it so far behind in the race that it believes the only way it can win is by sending in the lawyers?
  • the lesson for anyone else is this: disruption, the future and business model change happens. Deal with it through innovation and aligning yourself to the future, rather than trying to protect the status quo
    there should be a lesson for anyone

The funny thing about the future is this: it happens, whether you like it or not. It’s better for you to participate in it rather than fighting it.

#GMFAIL

In my keynotes, I often talk about how the rate of change — whether with business models, product life cycles, the rapid emergence of new competitors, business model disruption, skills and knowledge and more!  — is speeding up. With such change, there’s a lot of uncertainty within many industries as to what to do next: a senior executive of one client commented to me from his perspective, “….entities are engaged in survival tactics because they don’t know what to do next ….”

volvo-givemeyourmind550

Here’s a simple reality: Innovation is all about adapting to the future — and if the future is coming at you faster, then you need to innovate faster.

Given that, innovation shouldn’t be about trying to survive the future — it should be about thriving.

At a recent keynote to senior executives, I outlined some truths as to the future:

  • It’s incredibly fast: Product life cycles are collapsing. It’s said that half of what students learn in their freshman year about science and technology is obsolete or revised by their senior year. There are furious rates of new scientific discovery. Time is being compressed.
  • It involves a huge adaptability gap: Earlier generations — boomers — have had participated in countless “change management workshops,” reflecting the reality that many of them have long struggled with change. Gen-Connect — today’s 35 and under — will never think of change management issue. They just change.
  • It has a huge instantaneity: The average consumer scans 12 feet of shelf space per second. Most news becomes old hat within 36 hours of emerging. Rapid prototyping, 3D printing and the maker community mean that a product can go from conception to reality in a matter of weeks – if not days. We live in the era of the rapid idea-cycle.
  • It hits you most when you don’t expect it: Every organization must deal with two realities: the rapid emergence of new technologies, and the sudden adoption of old-hat ideas. If you want to understand what comes next, study Gartner’s concept of “hype-cycles”
  • It’s being defined by renegades and rebels: Increasingly, the future of many an industry is being defined by industry expatriates. When a real innovator can’t innovate within a company, they step outside, form a startup, and spark massive industry change on their own. Before you know, they’ve reinvented you, whether you like it or not
  • It involves partnership: Old business models involved asking, “what can we do to run our business better?” The new business model is this: “What can we do to run our customers, suppliers and partners business better?
  • It involves intensity: 80% of the revenue from the typical video game is earned within 4 to 5 days of release. That’s becoming the norm in many industries — although not in days, but perhaps months. Companies are discovering their new reality involves short, sharp shocks of revenue, followed by a need to constantly re-asses and reinvent. We must learn to run our business at video-game intensity: in fast paced markets, we need fast paced business capabilities!
  • It’s bigger than you think: I used to joke, back in 2003,  about a futuristic GoogleCar, and an era in which Silicon Valley would become the new centre of the automotive universe. With self-driving cars and other efforts, its not a joke anymore. Every industry is witnessing similar levels of disruption and acceleration. Complacency is a dangerous thing, particular when every organization is faced with constant, relentless external innovation from unexpected competitors.
  • It involves innovation intensity: With rapid change, everyone in an organization must innovate. Some years ago, I appeared on a the CNBC Business of Innovation show. It featured a lot of “innovation elitists” who seemed to indicate that only special people can “do” innovation. Wrong : thriving in the future has a leadership that involves everyone in innovation. No idea is too dumb, no opportunity is too small. In an era of fast change, organizations must be relentlessly innovative, and that requires drawing on the skills and creativity of everyone
  • It comes from experiential capital: With a fast future, you must learn and relearn. Corporate equity isn’t just money: it’s the cumulative experience and knowledge of the team. Yeas ago, Verizon took a lot of abuse from analysts for its’ big fiber optic bet, yet here’s what I see: the CEO stating that the cost of installing fiber dropped 30% in 2005, and that there was a further reduction of 15-20% by  2006. By the end of end of 2006, they expected it to cost 1/2 that of 2005. The more they do, the better they get. That’s experiential capital, and that’s an invaluable asset.

The future is going to hit you whether you like it or not; it’s your approach to it, and how you innovate with it, that defines your future success.

Interested in a keynote on the future of the automotive/trucking industry? Read this!

This January, I’ll keynote the American Financial Services Association 21st annual Vehicle Finance Conference & Expo in New Orleans.

afsa

The event draws some heavy hitters who will share their insight into what comes next, including the CIO for Toyota Financial Services, the President & CEO of TD Auto Finance U.S., the Executive Vice President for Ford Motor Credit Company, among others.

I’ll take a deep look at what is happening with the automotive world in the future — the reality and evolution of self-driving, autonomous vehicle technology, intelligent and smart highway infrastructure, the evolution to prognostic, self-diagnosing vehicles, the sharing economy and new business models, the acceleration of connectivity and innovation in the automotive sector, and the implications of all this on the future of automotive lending!

It should be fun!

This is one of many keynotes I’ve done in and around this sector. It involves a lot of deep research on the latest trends and initiatives, as well as comprehensive discussions with the client and industry insiders.

Let’s talk about organizations that are clearly innovation failures — those who are stuck in a rut, and unable to figure out what to do next.

embracechange

While doing so, ask yourself — is this the organization you work within, or are the CEO of?

With a twenty year focus on innovation, I’ve become convinced that many organizations develop a cultural sclerosis that holds them back to such a degree that their failure becomes a blinding liability.

What is common to these organizations? Several things:

  1. Fear of the unknown in times of economic uncertainty: Certainly the US election has placed many companies into a ‘wait-and-see’ mode: decisions are being deferred at a furious pace. The result is that many organizations are driven by uncertainty. What happens if our market doesn’t recover? What happens if we can’t rebuild the top line? What happens if our customers don’t start spending again? So much fear and uncertainty causes a form of leadership and organization wide paralysis to set in; they’re like deer caught in a headlight, and are frozen in time. Avoid that fate – and fast!
  2. Inertia is easy: when confronted by change, many people react by …. doing nothing. When things are uncomfortable, the easiest thing to do to deal with that discomfort is to avoid it. Such thinking causes many organizations and the people within them to fall asleep. They keep doing what they’ve been doing before, hoping that will carry them forward into future. Obviously that can’t work, for a whole variety of different reasons.
  3. It’s easy to avoid tough decisions : organizations are faced with a lot of change, in terms of business models, customer expectations, cost pressures, new competitors, and countless other challenges. To deal with any one of these issues requires tough decisions, but in many cases, it’s easier to put those decisions off into the future rather than having to deal with them.
  4. An unwillingness to confront the truth: your product might be out of date; your brand might not been seen as relevant and keeping up to date with fast paced innovation in your marketplace; your sales force might be wildly out of date in terms of their product knowledge; your competitors might have a more efficient cost structure because they made the heavy IT investments that you did not. I could go on, but the point is this: you might have serious systemic problems, and are simply unable or unwilling to focus on fixing them. Have a reality check, and use that as a catalyst for action.
  5. A short term focus: like many, you don’t think about business trends longer than three months or a year. By doing so, you are missing out on the fascinating transformations occurring in many markets and industries, and don’t see the key drivers for future economic growth, with the result that you aren’t capitalizing on them.
  6. A culture that is risk adverse: so far, you’ve survived through cautious, careful manoeuvres. Yet the fast rate of change around you has left you naked with that strategy: going forward now requires trying to do a lot of things you haven’t done before. You’ve got a culture that doesn’t accept such thinking. Change that — now!
  7. Paralyzed by the fear of failure: related to your risk aversion is a culture that abhors mistakes. Anyone who errs is shunned; people whisper quietly about what went wrong, and what it might mean. Banish that thinking: you should take your failures, analyze them, and better yet, celebrate them! Put them up on a pedestal. It’s more important that you try things out on a regular basis, since it is clear that what worked for you in the past obviously won’t work for you in the future.
  8. Failure to adapt at fast markets : I’m dealing with companies that know that constant innovation with top line revenue — which means product and service innovation — is all about time to market. You must have an innovation pipeline that is constantly inventing and reinventing the next form of revenue. What you sold in the past — you might not sell tomorrow. How are you going to fix that? By getting into the mindset of the high velocity economy!
  9. A refusal or unwillingness to adapt to new methodologies and ideas: in the manufacturing sector, it’s all about Manufacturing 2.0 or 3.0 or the next phase … in every industry, there is no shortage of new ideas, methodologies, processes, and fundamental change in terms of how to get things done. Maybe you’ve closed your mind off to new ideas, with the result that you fail to see how your competitors are rapidly shifting their structure, capabilities, time to market, product line, and other fundamentals. Wake up — we’re in the era of the global idea machine, and the result is that there is a tremendous amount of transformative thinking out there about how to do things differently. Tune in, turn on, and rethink!
  10. A loss of confidence: the economic downturn of 2008-2009 and ongoing volatility since then has had the effect of causing such widespread damage in various industries that some people and organizations and leaders have lost their faith in the future. They aren’t certain they can compete, adapt and change. Perhaps this is the biggest challenge of all to overcome — but you can only overcome it by getting out of your innovation rut and moving forward.

Bill Gates once observed that “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction.”

It couldn’t have been put better. What’s your choice – to be an innovation leader, aware of where we are going in the future, or an innovation laggard, still mired in short term thinking?

Think growth!

Is your organization an innovation laggard, a timid warrior without the resolve to try to achieve great things?

A common focus for many of the keynotes I’ve given for senior executive as of late revolves around the theme, ‘what is it that world class innovators do that others don’t do?”

Over a period of time of 20 years, I’ve had the opportunity to observe and learn from many organizations as to what they are doing to deal with a time that involves both massive challenge as well as significant opportunity.

Everyone is being impacted by business model disruption, the emergence of new competitors, the impact of technology, the collapse of product lifecycle, ongoing political volatility and ever-more challenging customers.

In that context, it’s clear that those very things which might worked for them in the past might be the very anchors that could now hold them back in the future. In the era of Uber, Tesla and Amazon, leaders must have the insight into unique opportunities for innovation and change.

That’s why they are booking me, as I am providing them with a customized overview of the key trends impacting them, and invaluable leadership lessons that provide a clear path for going forward.

What are some of these lessons? Here’s a short list:

  • fast beats big: In a time of unprecedented change, those who are prepared to think fast are those who are moving forward. Those who move fast get things done, and keep getting things done. Others wallow in a state of aggressive indecision; inaction breeds decay.
  • bold beats old: all around you right now, there are countless numbers of people and organizations who are out to mess up your business model. Given that, are you the Elon Musk of your industry, prepared to think big and take big bold steps? Or is your organization an innovation laggard, a timid warrior without the resolve to try to achieve great things? Bold thinkers make bold steps, aggressive moves, and big decisions. This is not a time for timidity; it’s a time for BIG ideas and the pursuit of the offbeat.
  • velocity trumps strategy: careful strategic planning can be a critical step in adapting to the future, but in some areas, things are happening so fast that you can’t take the time to strategize: you just need to jump in and go. That’s experiential capital it’s one of the most important investments that you need to be making now. Understand what it is, and why you need to be investing in it NOW.
  • flexibility beats structure: successful innovators have mastered the ability to form fast teams: they know their that their ability to quickly scale resources to tackle fast emerging opportunities or challenges are the only way that they can win in the future. They avoid the organizational sclerosis that bogs too many organizations down
  • disruptors destroy laggards: step into any industry, and there are people who are busy messing about the fundamental business models which have long existed. Start your own disruption before you find yourself disrupted
  • connectivity is the new loyalty: with the forthcoming dominance of mobile technology in everyday lives, everything you know about customer relationships is dead. Right now, it’s all about exploring and building new relationships throughout the mobile data cloud in which the customer lives. If you don’t get that, your brand is dead.
  • location is the new intelligence: with connectivity comes location, which results in new applications, business models, methods of customer interaction, and just about everything. If you don’t have a location strategy for your business, you really don’t understand how quickly your world is changing around you

For more on this thinking, check out the ‘innovation’ tag on my blog.

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