Report from the Field: Designing Networks for Innovation

A study last year conducted by the Center for Creative Leadership found that nearly 92 percent of the executives surveyed believe the challenges their organizations face are more complex than they were just five years ago. How do you innovate within such a dynamic, unstable and unpredictable environment? “Innovate together,” says BIF research advisor and UC-Davis professor Andrew Hargadon.

Hargadon, who is also the author of the bestselling How Breakthroughs Happen, was in the house last week for a half-day workshop called Leading with Vision: The Design of New Ventures.

It’s no surprise that a popular response to increasing complexity is to lean on innovation. And while companies look to create the next big product or service, Hargadon spent the morning talking about how the networks that support the business are just as important as the products themselves. In fact, says Hargadon, if you don’t spend as much time cultivating the network as you do creating the product or service, failure is your likely outcome. “We’re all designers,” he said.

Moving through historical and modern examples, Hargadon showed us that economic growth through innovation can be found when you carefully and creatively ferret out current capabilities within disparate systems and then bring them together to form new networks of innovation.

Networks of Networks: The Real Value of Innovation

From the perspective of complexity theory, effective network leadership is about learning to capitalize on interactive dynamics among and within a variety of organizations. In layman's terms, what does it take to prototype a business around a network? Here are two big ideas Hargadon shared to help you design your next big venture:

1. Building a better mousetrap isn’t enough (and it never was)

At the U.S. Patent Office there are 4,400 patents for a mousetrap. Twenty-four of those patents made money. And only 2 made it to become dominant designs – the Victor Smart Trap from 1899 and the Sticky Trap from the 1980s. “Emerson had it wrong,” said Hargadon. “Build a better mousetrap and the world will not beat a path to your door.” (According to Hargadon, Emerson didn’t actually say those words – although many think he did - but you get the gist.)

Many of the impacts we see today are in reality, the result of a community or network that ran with the initial idea or invention. For instance the light bulb was 40 years old by the time Edison started marketing his version. The steam engine was over 100 years old before James Watt found the investors, distribution channels, and manufacturing partners to bring it to the mass market. For both, it wasn’t the product that made them successful, it was the networks they built around the product.

As Hargadon aptly points out in his book: “A better mousetrap, like anything else, will succeed only when those who envision the idea convince others to join in their new venture – as investors, suppliers, employees, retailers, customers and even competitors.”

2. Innovation is about connecting, not inventing.

Depending on your affinity, this can be a difficult pill to swallow. Hargadon offered a great Kurt Vonnegut quote that reflects the dichotomic nature of creating and selling:

“If it weren’t for the people, the god-damn people” said Finnerty, “always getting tangled up in the machinery. If it weren’t for them, the world would be an engineer’s paradise.” Kurt Vonnegut, Player Piano (1952:59)

Chances are, if you have an idea and have brought it to fruition; five other people have done the exact same thing. (Look no further than the U.S. Patent Office for proof of this theory.) So how do you differentiate yourself? Hargadon says the key is to build a better network around your idea than the next guy. Ask yourself, what is it about your network that’s so special?

At the turn of the 20th century, the automobile industry was just emerging. There were 57 firms focused on building cars in the United States. In 1907, Henry Ford had 1,599 Model T’s on the road. By 1914, that number rose to 264,972. This astounding growth can be attributed to only one thing: the marketing and distribution networks Ford designed around his automobile. In retrospect, it had nothing to do with the car (or mousetrap) itself.

Ford began by building a network based on what was already out in the marketplace; he combined proven systems from disparate industries for immediate gains. For instance, his assembly-line originated with the meat-packaging industry; the idea for interchangeable parts originated with a gentleman by the name of Walt Flanders who had worked with Singer Manufacturing, the maker of Singer sewing machines and an early pioneer of interchangeable parts. Even breweries lent a hand in developing Ford’s conveyor systems. And his distribution network? Ford tapped bike shops. By 1907, he had signed up 15,000 people to sell his car.

Henry Ford’s explanation for his success: “I invented nothing new. I simply assembled into a car the discoveries of other men behind whom were centuries of work…Had I worked fifty or ten or even five years before, I would have failed. So it is with every new thing. Progress happens when all the factors that make for it are ready, and then it is inevitable. To teach that a comparatively few men are responsible for the greatest forward steps of mankind is the worst sort of nonsense.”

Next Steps: What Can You Do to Build a Better Network?

Juggernauts of systems building like Ford or Watts had gumption to spare. It’s important when designing a network, that the value your gumption generates touches every other member of the network too. It’s critical that you define for each member how your new network will enhance (or disrupt!) their operating model. Network builders think empathetically – they understand the needs of each of their partners.

A modern example that epitomizes the value of network design is Apple. Through the iPod, Apple changed the way we buy, share and listen to music. They didn’t do it alone and in actuality, there was very little inventing going on within the walls of Apple. In order to create this new business model, the company collaborated with hardware and software vendors, record labels and artists to compete in a way that so far, no one has been able to touch.

Network innovations, according to Hargadon, connect rather than create value. Whether you offer a product or a service, you need to ask yourself what value you create within the value chain. Are you helping or hindering its flow? To create innovation through disparate capabilities, Hargadon recommends the following:

1. Get the right people on the bus and think outside your current knowledge base. This means tapping into silos outside the organization and looking for skill sets beyond what you currently have. Look beyond functional skill sets like finance or engineering and move away from reductionist perspectives that hinder holistic systems thinking.

2. Think analogously. It’s not easy to untangle existing capabilities from contexts other than your own and then put them together in new ways. To do that, you need to focus attention and energy on how things are the same. Which means don’t automatically dismiss an idea that works somewhere else because it’s a different industry or a different customer or a different material. “The best ideas won’t come looking like they’re just right,” says Hargadon.

3. Embrace the discomfort zone. Sitting between worlds can be a disarming place especially when you find yourself consistently on a steep learning curve. Yet that’s precisely the place you want to live in. To be a coalition builder means accepting that you’re not going to be as smart in one network as you are in another. Yet Hargadon says “the benefit of this discomfort lies in freedom from the binding (and blinding) ties of any one small world.”

4. Design the venture as a network not a product. This in turn will provide linkages to emergent systems and allow you turn complexity into a competitive advantage. At the end of the day, network innovation isn’t about moving into places you know little about. Instead says Hargadon, “it’s about finding worlds you know little about but where your own knowledge looks valuable too.”

Our thanks go out to Andrew Hargadon for a most enjoyable and thought-provoking workshop.

RELATED

Books
I highly recommend Andrew Hargadon’s book How Breakthroughs Happen.

Other reading: Andy recommends American Genesis: A Century of Invention and Technological Enthusiasm, 1870-1970 by Thomas Hughes which gets into the very nature of systems building.

I also recommend Roger Martin's new book The Opposable Mind: How Successful Leaders Win Through Integrative Thinking. Martin describes in good detail how leaders must think in order to span silos and foster collaboration.

Blogs
Andy blogs regularly at Harga-Blog.

Video
During the past three years, we've had some great innovators walk through our doors to talk about networked innovation. I recommend watching the following videos:

Robert Ballard, Marine Explorer and Professor, Institute for Exploration and University of Rhode Island
Alph Bingham, former President and Chief Executive Officer, InnoCentive
John Donoghue - Founder and Professor, Cyberkinetics and Brown University
Steven Johnson - author of Ghost Map, founder Outside.In
Ivy Ross - Former Executive Vice President for Product Design and Development, Gap Inc./Old Navy

Posted April 29, 2008 by Chris Flanagan | Permalink | Comments (0)

More on why creative tension works

Yesterday I blogged about Ford Motor Company's new CMO James Farley and a recent comment he made about the need for 'institutionalizing tension' for creative breakthrough. Here's another great quote passed along to me this morning from Kottke.org. It's chef Dan Barber talking about his organizational philosophy at the innovative kitchen of Blue Hill at Stone Barns:

"At the same time, I don't think the cooks look at me as a real community member. I'm not that cozy paternal figure. I'm always doing different things, and it creates this atmosphere where the cooks are on the balls of their feet. They're thinking, Where's he going next, what's happening next? There's a little bit of confusion. I think that's good. It's hard to articulate, because you think of the kitchen as very organized; and, like I said, the more control you have, the better. But a little bit of chaos creates tension. And that creates energy and passion, and it tends to make you season something the right way or reach for something that would add this, that, or the other thing." [Source: Metropolis Magazine]

A kitchen is both a laboratory and collaborative workspace and it's a very fine line between tension and liberation. It's clear that good leaders have an arsenal of creative ways to manage both sides.

If anyone has other examples of leadership and creative tension building, I'd be most interested to hear them.

[Image Source: Jen Munkvold for Metropolis]

Posted April 22, 2008 by Chris Flanagan | Permalink | Comments (0)

An Artful Wink at Innovation + Design at NYC's MoMA

If you're in the area, New York City's Museum of Modern Art (MoMA) has a new exhibition about the future of innovation called "Design and the Elastic Mind."

The exhibition highlights many examples of successful translation of disruptive innovation, examples based on ongoing research, as well as reflections on the future responsibilities of design. Of particular interest is the exploration of the relationship between design and science and the approach to scale."Designers stand between revolutions and everyday life," explains the exhibition's introduction.

Curated by Paola Antonelli, the exhibition highlights designers’ ability to grasp momentous changes in technology, science and history – changes that demand or reflect major adjustments in human behavior – and translate them into objects that people can actually understand and use. The exhibit’s accompanying website presents over three hundred of these works, including fifty projects that are not featured in the gallery exhibition.

Our own BIF research advisor John Seely Brown is featured in the “Thinkering” category. Many designers, scientists and artists have turned to design to give method to their productive tinkering or what JSB calls “thinkering.” They all belong to a new culture in which experimentation is guided by engagement with the world and open, constructive collaboration with colleagues and other specialists.

Some of the objects shown range from nano-devices to vehicles, from appliances to interfaces, and from pragmatic solutions for everyday use to provocative ideas meant to influence our future choices. Crazy cool stuff. I’ll have to get myself to New York to check out the exhibit. It runs through May 12th.

Head to MoMA to learn more

(Image is a nanodevice on display at MoMA's Design and the Elastic Mind exhibition)

Posted April 21, 2008 by Chris Flanagan | Permalink | Comments (0)

Innovation Process: The Art of Building Creative Tension

I can't imagine a more difficult job than working to transform Ford Motor Company. Sunday's New York Times had a good profile of Ford's new CMO James Farley. Hired six months ago, this former marketing whiz from Toyota has a daunting job ahead of him : orchestrate a comeback for the struggling automaker which lost $15.3 billion during the last two years.

It's clear from the article that Farley is a passionate, intense individual with a strong desire to help Ford reclaim its gloried past. (His grandfather worked at Ford's Rouge plant and ultimately became a dealer.) I found one quote in particular revealing because unlike most executives who talk a great game about fostering creativity and workplace collaboration, Farley likes to run experiments that uncover the dark underbelly of a company:

"I believe that working together is about institutionalizing tension so we can make breakthroughs. I found it absolutely liberating to see Ford people watch their own dealers struggle with the way to present the company to customers." ~James Farley, CMO, Ford Motor Company

There's an art to building creative tension and Farley's experience at Toyota should carry him well. Fostering innovation can seem overwhelming to both leaders and employees - especially when in the midst of financial downturn - 'institutionalizing tension' is an interesting approach to transformation.

Get the New York Times article A Star at Toyota, A Believer at Ford

Posted by Chris Flanagan | Permalink | Comments (0)

BIF Research Advisor Andrew Hargadon on the Design of New Ventures

In anticipation of our workshop on the design of networked innovation, bestselling author Andrew Hargadon passed along an article he wrote a while back called Leading with Vision: The Design of New Ventures. Great primer before our hands-on workshop next Thursday, April 24th.

Most innovators today readily acknowledge that design is essential to the enterprise. In this article, Andy argues that as designers, we must go beyond the making of individual products or brands to cut across the traditional boundaries within firms to creative innovative business ventures. Advocating a new profile of design leadership, he explains how design principles and practices are uniquely suited to this multidimensional task.

Get the article Leading with Vision by Andrew Hargadon

If you're interested in attending next week's workshop - there's still limited seating available. Registration is free - learn more here.

Posted April 18, 2008 by Chris Flanagan | Permalink | Comments (0)

BIF Board Member Ellen Levy Accepts Key Post at LinkedIn

Congratulations to BIF Board Member Ellen Levy who was just appointed Vice President of Corporate Development and Strategy at LinkedIn Corporation. In her new role, Ellen will play a critical role in overseeing business development, identifying and managing strategic partnerships and assessing new market opportunities.

Connecting the right people to the right ideas and opportunities has always been a passion of Ellen's and she has years of experience doing just that through her work with startups, large companies, venture capital firms, research labs and universities. I often relay a story she told me last year about how her enthusiasm for making connections evolved:

Back in 1999, in the midst of the Internet bubble, working first as an Internet startup executive, and then as a venture capitalist, Ellen also spent the entire year chronicling her life and taking pictures of everyone she met. She didn't miss an entry for 365 days, and ended up with a document nearly 3,000 pages long. She found, among other things, that it helped her create a true awareness of the relationships around her. "Ultimately, people are what matter," she told me. "The best connections usually aren't that obvious — I am constantly turning over rocks. The curiosity of what I might find is addictive. And when the connections result in something truly meaningful, it is incredibly gratifying."

Ellen has been very supportive of the Business Innovation Factory and our mission of enabling collaborative innovation. I know I speak for everyone here at when I say congratulations Ellen and best of luck in your new position.

Related
Read our story about Ellen called Living the Network Effect
See Ellen in action at last year's BIF-3 Summit
Read my blog recap from Ellen's workshop earlier this month Building Purposeful Networks: Are You a Dead Node?

Posted April 16, 2008 by Chris Flanagan | Permalink | Comments (0)

New Book by P&G CEO A.G. Lafley

Bruce Nussbaum of BusinessWeek has written a glowing review of A.G. Lafley's new book co-written with Ram Charan called "The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation." Writes Bruce: "Lafley, the remarkable CEO of Procter & Gamble, gives us the state-of-the-art in innovation. It tells you exactly what the best practices are in the one non-techie company that has embraced innovation as a total corporate strategy and as an organizational culture."

I wrote an article about P&G a couple of years ago called ‘Even Giants Start Small’ In it, I use a quote by Elting Morrison to describe the company: “No intellectual heroism or psychic leap will take you from the development of the wheel immediately to the internal-combustion engine and the automobile.”

For anyone out there who thinks they can’t achieve what this company has done, think again. P&G experiments all the time and they've done it for generations. They don’t have one open innovation initiative running – they have dozens. There’s a mountain underneath their success in terms of the learning that took place, the evolution of programs and the various types of experimentation. As Larry Huston, the creator of P&G's Connect + Develop program (and BIF Research Advisor) once told me "We started with a small team, in a small office and jumped on the learning curve."

Back in 2001, when P&G came up with 90% of its innovations internally, A.G. Lafley publicly proclaimed that the company would work toward a goal of sourcing 50% of its innovation externally (they achieved that goal btw last year). Changing the mindset one of the world’s largest companies from ‘not invented here’ to ‘ideas can and will come from anywhere’ was a transformation that required research, commitment and a lot of motivation. Most importantly though – it required leadership. And that, I believe, is the secret sauce for successful innovation.

Related
Read my article on Larry Huston and Connect + Develop

Don't miss Bruce Nussbaum this October in Providence when he co-hosts our 4th annual Collaborative Innovation Summit. Details here.

Posted April 15, 2008 by Chris Flanagan | Permalink | Comments (0)

April 24th Event Reminder: Leading with Vision: The Design of Networked Innovation with Andrew Hargadon

While social networking sites like Facebook and LinkedIn are grabbing all the limelight, something more profound is occuring in the Web 2.0 space: new economics are taking shape through the networking of not just people, but institutions as well. Andrew Hargadon, associate professor at UC-Davis Graduate School of Management, wrote one of the best books on innovation a couple of years ago called How Breakthroughs Happen. I'm thrilled that Andy will be in the house next week on Thursday, April 24th for a half-day workshop called Leading with Vision: The Design of Networked Innovation.

Leading with Vision: The Design of Networked Innovation with Andrew Hargadon

April 24, 2008, 8:30 a.m.–1 p.m.

Location: BIF headquarters in Providence, Rhode Island

Moving between historic and modern example and plenty of interactive experiences, Andy will offer a framework for driving the adoption and evolution of new ventures through networked innovation. Lots of companies have prospered by effectively embracing new networks. This workshop will show you how to do it.

Registration is free - and space is limited - so sign up now

Posted by Chris Flanagan | Permalink | Comments (0)

Kelly Space & Technology Cites Innovation Capacity as Driver in Decision to Open East Coast Operation in Rhode Island

The BIF team was excited to learn that Kelly Space & Technology, Inc., a San Bernardino-based California company focusing on aerospace, energy and homeland security technologies, is establishing an East Coast operation in Rhode Island. The high-tech company cites Rhode Island’s capability to serve as an innovation laboratory and foster innovation as key drivers in its decision to locate in the Ocean State. Kelly learned about BIF while evaluating possible locations for its East Coast operations.

To capitalize on progress being made with its lightweight ballistic protection armor technology at its Aerospace Research and Development Center, Kelly Space is seeking to commercialize this technology for watercraft applications. The company plans to use Rhode Island’s strong marine and defense platforms and the state’s capability to serve as an innovation laboratory to create new market opportunities for Kelly’s armor technology as well as other technology platforms under development.

“Rhode Island’s great marine and defense industry and its growing science and technology community, coupled with programs like the Business Innovation Factory (BIF) provides a neutral platform where public and private sector innovators can collaborate to explore and test new business ideas. This convergence of resources offers Kelly an ideal environment to produce innovative watercraft for our armed services and law enforcement agencies utilizing our ballistics technology,” said Michael J. Gallo, President and CEO of Kelly Space & Technology, Inc. “Our new East Coast Operation will facilitate commercial arrangements and discussions with the federal government to determine the eventual scope and scale of production of ballistically-armored watercraft.”

“We are pleased to welcome Kelly Space & Technology to Rhode Island and look forward to making their next phase of growth a great success. Kelly represents an important opportunity for Rhode Island to use its unique strengths and strong position in the marine and defense sectors to create good, high wage jobs for the state’s citizens,” said Saul Kaplan, BIF Chief Catalyst and Executive Director of the Rhode Island Economic Development Corporation. “Kelly’s decision to locate in Rhode Island reinforces that Rhode Island is a strategic location of choice for innovators looking to develop and test new ideas in a smaller, more manageable environment and then scale those ideas nationally.”

Kelly Space has been working to develop a lightweight polymer-based ballistic protection system that is capable of being molded into any shape for a wide variety of applications, and possessing substantial superior weight-strength advantages over leading ballistic armor products. The proprietary system works by absorbing and distributing the initial ballistic impact while eliminating fragmentation of shrapnel that can cause secondary injuries and death. Incorporating Kelly Space’s ballistic protection material into the watercraft hull significantly increases buoyancy and will offer virtually any level of ballistic protection desired cost-effectively.

Kelly Space & Technology’s Aerospace Research & Development Center was established to mature and deploy technologies that provide advancements in aviation, space, homeland security, energy generation and related technologies for both military and commercial system applications. The 30-acre, six-building center is located at the former Norton Air Force Base, in San Bernardino, California which supported the operations and maintenance of C-141 aircraft engines for the 63rd Military Airlift Wing and was home to seven major USAF Commands.

About Kelly Space & Technology

Kelly Space & Technology, Inc. is a privately held aerospace, energy and homeland security technology company based at the San Bernardino International Airport (the former Norton Air Force Base), California. For more information, visit www.kellyspace.com

Posted by Melissa Withers | Permalink | Comments (0)

Can modeling and simulation enable collaborative innovation?

I was watching the Master's Tournament this weekend and enjoyed the incredible high-definition television images from Augusta National. As a true geek wannabe I was most impressed with the use of a simulation model of the entire golf course and how it enhanced my viewing experience. If modeling and simulation technology can improve the experience of watching a golf tournament surely it can help to improve more important experiences for us as patients, students, citizens, and consumers.

I believe that modeling and simulation has an important role to play in enabling system innovation in the areas that matter most - little problems like healthcare, education, public safety, and quality of life. These tools can help the BIF community accomplish our mission to enable collaborative innovation by accelerating the transition of new business model ideas from the white board on to a real world test bed.

Today I have the opportunity to welcome many like-minded geeks at the plenary session of a national conference "Modeling and Simulation Innovation at the Intersections" which is hosted by two national leaders in this space SISO (Simulation Interoperability Standards Organization) and BRIMS (Behavior Representation in Modeling and Simulation).

I like this quote from the conference organizers: "It's time for us to converge, to explore our common and diverse interests by exploring the intersection and seeking an explosion of ideas." Sound familiar?

In my plenary session welcoming remarks I will ask all of the conference participants:

"How can modeling and simulation help our BIF community to enable collaborative innovation?"

and even more specifically

"How can it help us in our Nursing Home of the Future project to explore and test better ways to deliver care to our growing elder population?"

I hope they are receptive because we can use their help. I welcome your thoughts - please add your input or comments below.

Posted April 14, 2008 by Saul Kaplan | Permalink | Comments (1)

New BIF Project: Introducing the Nursing Home of the Future

In case you missed it, the Business Innovation Factory is partnering with the Tockwotton Home, Quality Partners of Rhode Island and the MIT AgeLab to create a real-world laboratory for developing and testing new solutions, products and models for improving elderly care. Leveraging the BIF Experience Lab platform, the "Nursing Home of the Future" will create a platform for innovators and industry partners to transform current approaches to elderly care in assisted living and nursing care facilities.

We're thrilled about this new laboratory because its outcomes will provide a roadmap for redesigning the next generation of elderly care solutions. It will also help companies and care providers deliver better value to our burgeoning elderly population.

For this effort, the partnership team engages residents and staff at Tockwotton Home, a 30-bed assisted living center and 42-bed skilled nursing home located in Providence, Rhode Island. Tockwotton Home also plans to open a new 150-bed facility in 2010 in which they will dedicate a patient unit and common living areas to the Nursing Home of the Future initiative..

Also central to the partnership is the leadership and expertise of Quality Partners of Rhode Island (QPRI). QPRI carries the Medicare and Medicaid designation as the National Nursing Home Quality Improvement Organization Support Center since 2002. In this role, QPRI serves as a national leader and center of excellence in nursing homequality and provides clinical support and quality improvement materials to Quality Improvement Organizations (QIOs) throughout the United States.

Partners are now recruiting Phase 1 sponsors and mobilizing the initiative. Phase 1 activities will begin with a comprehensive analysis and mapping of the current experience of nursing home and assisted-living residents, an analysis of unmet needs in current care models, the identification and prioritization of an initial set of target opportunities, the architectural design of the patient unit in the new home, and ongoing stakeholder engagement and communication efforts.

Spearheading Phase I is industrial design expert and BIF Experience Labs Director Mickey Ackerman who has this to say: “The Nursing Home of the Future allows us to capture the experiences of residents as they move through daily life. In this environment we can construct a more accurate picture of how residents interact with the facility and staff, utilize private and shared spaces, make use of equipment and furnishings, access medical care and engage in recreational activities. This method of real-time intervention and direct end-user engagement enables us to quickly and cost effectively develop and test new ideas, products and systems while simultaneously determining if a novel solution will work in a real-world environment. You simply cannot do this in a corporate or academic research lab or classroom.”

Learn more and stay-tuned for future updates at project headquarters.

Posted April 11, 2008 by Melissa Withers | Permalink | Comments (0)

BIF Podcast: A conversation with Here Comes Everybody author Clay Shirky

BIF Research Advisor Clay Shirky is one of the world’s most perceptive social media thinkers. A writer, consultant and teacher on the social and economic effects of Internet technologies, Clay also teaches New Media at New York University. His new book is Here Comes Everybody: The Power of Organizing Without Organizations. I can’t recommend his book enough – when you couple strong theory with great writing, a fascinating read undoubtedly follows and his book is no exception.

Here Comes Everybody explores the ability of groups to act without leaders. It describes the profound impact of social technological tools on today’s culture—from e-mail and blogs to Twitter and wikis —and surmises that we’re in the midst of a revolution as profound as the advent of the printing press.

So what changes can we expect? In this podcast interview, I talk with Clay about his new book and how established companies can start to take advantage of this new world order. We also talk about the role real-world experimentation plays in virtually-based environments.

Listen to the podcast

Posted April 07, 2008 by Chris Flanagan | Permalink | Comments (0)

Report from the Field: Thoughts on Design Thinking

Some 40 attendees participated in last week's experiential workshop Design Thinking: Beyond the Buzz Words hosted by Dan Buchner, Vice President of Innovation and Design at renowned design consultancy Continuum. A lively and engaging workshop from beginning to end, Dan and his team of designers presented a day-long deep dive into the world of design thinking. Turns out that you can indeed use design thinking to solve business objectives - all you need is an open mind and a few tools.

Design Thinking 101

A powerful methodology for marrying creative right-brain thinking and analytical left-brain thinking, design thinking doesn’t prefer one method of thinking over another but rather, it blends the positive aspects of both. (Roger Martin, dean of Toronto’s Rotman School calls it ‘integrative thinking.’) This talent is at a premium today because innovation so often happens in the space between disciplines. Design thinking can get you into those spaces - it's a proven strategic methodology, long used by industrial design firms but now businesses are beginning to see its merits too. Balancing skeptical and cautious with open and risky requires finesse and firms like Continuum, universities like the Rotman School and business leaders like A.G. Lafley are leading the charge. Here at the Business Innovation Factory, we use design thinking as a catalyst for all of our work. This integrative approach has enabled us to build an experimentation platform for creating a real-world test bed of innovation.

How to Reap the Rewards of Design Thinking
Immersive from the get-go, Dan and his team brought us on a journey to redesign the packaging of a cellphone. We watched three videos of three different people opening up and trying to turn on three different cell phones. It was fascinating to watch the effort - turns out the iPhone was the easiest to open and the AT&T Go Phone was a maddening struggle. From there, we were broken into six separate teams and traveled through the journey map from ethnographic observation to prototyping.

A journey map is a designer's roadmap to innovation. It's a method of visually representing the actual and everyday user experience of a product or service. Simple, straight-forward, yet time-consumming too, this method helped us understand the intentional and unintentional aspects of our cell-phone customer's journey. During the workshop, we humanized the map with personal insights, anecdotes and photos, using the user's language from the video tapes. In the end, this approach helped us significantly to identify and design opportunities for improvement and innovation.

Producing significant value from design involves a deep understanding of customer behaviors, corporate leadership, organizational culture, and cross-discipline work teams. It’s NOT ideation and brainstorming. That became abundantly clear during the course of the workshop. In fact, we did very little brainstorming until the end of the day. Instead, we learned that it’s very helpful to think about design in terms of a whole system rather than discrete buckets of new products or services. The big mistake most companies make is holding brainstorming sessions too soon. Instead, you need to inform the context and obtain a thorough understanding of your customer's needs and aspirations as well as the environmental conditions and constraints in which they live. It's only after this process takes place when creativity and ideation kicks in. (For all of us in the workshop, applying visualization techniques was key to propelling the process forward and the humble post-it-note an unbelievable asset.)

It was a lot to chew on in one day but somehow going through the process of redesigning the packaging of a cellphone provided just enough context for many of us to have an a-ha moment: While processes like Six Sigma can help you squeeze more efficiency out of your operating processes, design thinking tackles value generation from a different place - it really can help you create entirely new markets, businesses, and business models. But you must take the time and go through the process.

I want to thank the folks from Continuum for a great day of learning and discovery. Forty diverse people from the public and private sectors came together and many innovative concepts were created. Business executives should take notice: if you’re looking for industry-revolutionizing concepts, there is a methodology available to you, and it does deliver results.

Finally, here are a few final thoughts gleaned from several of our workshop participants or, you know you have what it takes to be a design thinker when you:

• Are exhaustive in your observations and lines of questioning.
• Start looking at the emotional motivations, frustrations and expectations of your customer.
• Don't smother innovative, hare-brained potential with risky and cautious attitudes
• Are non-hierarchical and include everyone in your organization in the innovation process.
• No longer include “that can’t be done” in your vernacular.
• Understand that perspectives add value and diversity in problem-solving means everything.
• Can travel a journey map from beginning to end.
• Live to experiment and always look to try things out without knowing if you have the right idea.

Next Up
Our next workshop is taking place on Thursday, April 24th. Andrew Hargadon, author of How Breakthroughs Happen will take us through a half-day workshop on the Design of Networked Innovation. If you're interesting in learning how companies interact to build networks of innovation, this workshop is for you. Moving between historic and modern examples and interactive experiences, Andy will provide us with a design framework for driving the adoption and evolution of new ventures. Registration information is here. Don't miss it!

Posted by Chris Flanagan | Permalink | Comments (0)

BIF Research Advisor Clay Shirky On Colbert Report

Did you miss it? BIF Research Advisor Clay Shirky appeared on The Colbert Report last night talking about his new book Here Comes Everybody: The Power of Organizing without Organizations. Clay is a very smart guy - fun watching him try to get a word in with Colbert. More importantly, Clay's book is great. I'll have my own podcast interview with him posted on Monday. (And I promise he'll get to talk a whole lot more!)

Watch the video

Posted April 04, 2008 by Chris Flanagan | Permalink | Comments (1)