Friday, April 27, 2012

How The Missing Link in Innovative Research Cultivate New Scientific Insights

Despite continuous growth in R&D spending, many senior leaders remain deeply concerned about their organization’s ability to innovate. For example, the pharmaceutical industry has more than doubled its spending on research and development during the last 10 years, but its success rate in finding new drugs has been disappointing. Yet new research by Booz & Company points to an unexpected and unheralded source of potential productivity: midlevel managers in the R&D function. Companies can significantly raise their R&D productivity by recognizing and activating the unique impact of leaders in the middle of the organization’s hierarchy.

Our research with pharmaceutical companies reveals that leaders in the middle of the hierarchy have a singular ability to identify the company’s most creative bench scientists — and to help them cultivate new scientific insights and connect with the most promising external sources of innovation. These midlevel managers are an underused asset. They can nurture and navigate promising ideas through complex organizational decision making, reinforce an environment of top-quality science, and keep the brightest minds engaged day in and day out. Better use of the midlevel cohort can be a critical factor leading to breakthroughs in innovation effectiveness — not just in the pharma industry, but in sectors such as chemicals, energy, and aerospace and defense.

Bigger Companies, Less Success

By nearly all measures, new drug discovery and development has been declining for more than a decade — even as R&D spending by the largest companies has more than doubled. Why?

A wave of consolidation in the pharmaceutical industry over the past two decades has created larger companies with bigger product portfolios. But almost across the board, that wave has saddled R&D units with diseconomies of scale and too much bureaucracy to be effective. As a result, the capacity to generate new insights and make shrewd investment decisions has not grown proportionally, and has even declined. The rate of new drug discovery over the past 10 years has been so poor that the head of one big pharmaceutical company has dubbed it the “lost decade.”

In an attempt to reverse this trend and increase productivity, innovative R&D organizations have deployed a range of different management, technology, process, and structural solutions:

• Earlier commercial involvement in project decision making, in an effort to enhance focus on commercially relevant compounds

• More rigorous procedures for portfolio management and more stringent criteria for the adoption of new projects

• Clearer guidelines for the handover from discovery to development, and for the integration of basic laboratory research with clinical trials and other applied research

• More sophisticated and comprehensive incentive and reward structures

• New structures that enable more external partnerships for discovery and the outsourcing of “non-core” activities

Some large R&D organizations have begun to create smaller, more accountable units, but that alone has proven insufficient. In 2008, GlaxoSmithKline PLC, as reported by the Wall Street Journal on July 1, 2010, divided its research and development function into small groups of up to 80 scientists in an attempt to create the innovative atmosphere and close working relationships of a biotech startup.

Although these approaches have contributed to more efficient research and thus deserve attention, they have not been able to promote and nurture the new insights that can lead to more effective drug discovery. In most R&D efforts, breakthrough insights come from the work of individual scientists who connect their own deep expertise in one domain with ideas from another discipline. Most notably, in a speech delivered in 1922, “How I Created the Theory of Relativity,” Albert Einstein credited his insight to his discussions with Swiss/Italian engineer Michele Besso, with whom he did “battle against that problem.” The most creative scientists will propose new ideas based on their expertise and input from other disciplines, recombining facts and ideas into new insights. (See “How Aha! Really Happens,” by William Duggan, s+b, Winter 2010.) via strategy-business.com

New Solutions to Attract and Retain More Customers

Jim Woods is president and founder of InnoThink Group; a leading Strategic Management and Innovation Consulting Firm in Denver, Colorado. He is an author, speaker, and a strategic innovation and hypercompetition expert to profit, non-profit organizations and municipalities. He advises clients with an objective view of their competitive capabilities and defines a clear course of action to maximize their innovation return on investment to achieve profitable growth. Build a capability for ongoing competitive innovation across your company. Call 719-649-4118 or complete our form: contact us for more information on hiring Jim to advise or speak for your next event.

How to Create Customer Led Innovation Strategies

Is it ever OK to lie in business? Standing on stage at a central London hotel last week to launch the FT Innovate conference, Martha Lane Fox, co-founder of Lastminute.com, used her own experience to suggest that, sometimes, it was.
The doyenne of the UK’s dotcom industry made what seemed a startling public admission. “The first customer testimonials on the site were made up by me,” she said. “I can say that now with aplomb but I took my friends and I wrote stories about them and the incredible experience they had buying products and services from Lastminute.com.”

The comments elicited barely a murmur among the audience but they matter for two reasons. First, because of Ms Lane Fox’s status as a dotcom trailblazer and, since she sold the company in 2005, her high-profile roles as the UK government’s Digital Champion and as a non-executive director at Marks and Spencer and Channel 4.

Second, and more important, because they hint at the big question underlying all the presentations, the chatter in the hall and on Twitter: how being innovative today means finding how to engage with your customers as early in the process and as deeply as possible.
Context matters. Ms Lane Fox wouldn’t get away with concocting customer feedback today. Why? Because, as she pointed out, in the wild west days of the early dotcom era, customer testimonials were only a small part of the business model. Now, the smartest businesses, from retailers to fashion brands to credit card businesses and manufacturers, are trying to engage their customers to drive innovation in their offerings.
Tasti D-Lite, a US low-calorie frozen dessert chain, says its edge in engaging has been the intelligent use of social networking technologies to do this. So, it uses the location-based app Foursquare to push offers directly to customers that are part of its loyalty programme when they pass within a block or two of its branches. The company is also very active on Twitter, intervening when potential customers are still weighing their options. If a consumer is considering Tasti D-Lite or a rival and tweets about it, the company will start following that individual or send them a message. This, it says, increases its chances of making a sale.
The company also makes sure its employees follow its social networking sites on their monitors, enabling them to understand how powerful a tool they are for the business. B.J. Emerson, head of technology, says a failure to engage with customers who are already using these technologies is a form of “social negligence”.
Using customers to inform your decisions directly is not just about the clever use of technology. Good designers such as Michael Bierut, a partner at Pentagram and co-founder of the Design Observer weblog, understand this better than most. One of his rules for being innovative, he told the conference, is to “shut up and listen”.
When he was hired by conductor Michael Tilson Thomas to come up with a logo for his Frank Gehry-designed concert hall in Miami, Mr Bierut presented him with a series of options. The client’s response to one of them, Mr Bierut said, was to ask if “this is supposed to make us feel nauseous?” and to put forward his own designs. Rather than seeing this as a professional slap in the face, Mr Bierut used the designs to come up with a better one himself.
For big organisations, the big challenge is how to create a culture that encourages customer-led innovation. The best answer I have heard was from R. Gopalakrishnan, a senior executive at Tata. He said that companies need to be willing to look beyond market research and focus groups to understand the context of what their customers’ needs are. When the company, for example, was designing a water filtration system, he personally spent time in the homes of poor Indian families, sitting round the fire to understand how they used water.
Customers have always engaged with those companies with which they have a special affinity. Ms Lane Fox explained that she was once accosted in an M&S shop and asked why the company had changed the packaging of its figs.
The difference now is that this is more of a business obligation than ever if only because if you aren’t engaging, your competitors will be. And that is a very uninnovative way to lose business. ravi.mattu@ft.com via ft.com
New Solutions to Attract and Retain More Customers
Jim Woods is president and founder of InnoThink Group; a leading Strategic Management and Innovation Consulting Firm in Denver, Colorado. He is an author, speaker, and a strategic innovation and hypercompetition expert to profit, non-profit organizations and municipalities. He advises clients with an objective view of their competitive capabilities and defines a clear course of action to maximize their innovation return on investment to achieve profitable growth. Build a capability for ongoing competitive innovation across your company. Call 719-649-4118 or complete our form: contact us for more information on hiring Jim to advise or speak for your next event.

Stephen R. Covey Book Review: The Soft Stuff Is the Hard Stuff

In my 35-year corporate journey and my 60-year life journey, I have consistently found that the thorniest problems I face each day are soft stuff — problems of intention, understanding, communication, and interpersonal effectiveness — not hard stuff such as return on investment and other quantitative challenges. Inevitably, I have found myself needing to step back from the problem, listen more carefully, and frame the conflict more thoughtfully, while still finding a way to advance the corporate agenda empathetically. Most of the time, interestingly, this has led to a more promising path forward and a better relationship, which in turn has made the next conflict easier to deal with.
Stephen Covey provides a more direct approach to successful problem solving in the excerpt below from his new book. From the outset, his “3rd Alternative” approach engages everyone involved in an issue to advance the agenda in a winning way. The soft stuff will forever be the hard stuff, but leveraging 3rd Alternative thinking can make the soft stuff significantly easier to resolve productively.
— Douglas R. Conant

An excerpt from Chapter 3 of The 3rd Alternative: Solving Life’s Most Difficult Problems

If you’re a 3rd Alternative supervisor, you’ll neither flee nor fight. You’ll look for something better [when conflict arises], a solution that will provide your employee with a huge emotional payoff and create for the firm new and significant value.
A friend of mine explained how a 3rd Alternative leader dealt with exactly this situation in his life:
I was new at the job and had come in hoping for a better salary. I settled for something a lot less than I’d hoped for just to get in the door. But after a couple of months, it was clear that my family was struggling. We couldn’t get by because of some medical expenses. Besides that, I felt more and more that I was getting paid too little for the work I was doing. So I took a real risk and went to talk to the big boss about a raise. I didn’t know her very well and she didn’t know me. I had no real track record yet with that company.
But she invited me into her office and I explained why I was there. I was kind of surprised when she said, “Tell me more.” I told her about my family situation. She just listened, and I talked quite a lot about what I’d been doing for the firm. She asked me what I thought about the company, its customers, its products. It was odd. We had this long conversation that I thought was going to be about my pay, but instead was about me — how I was doing, what I thought, what I’d learned in my few months at the company.
Then she asked me about a certain customer I’d been working with. She wanted to know my ideas for expanding our business with that client, and I actually did have some thoughts that I shared.
A couple days later, she invited me back into her office. Three or four other people joined us, and she had put up on a whiteboard my ideas for this client. We had quite the discussion, and a lot more discussions after that. I was excited. Finally, they offered me an expanded job with higher pay and responsibility for a new level of service to this important client.
For my friend, these discussions were just the beginning of a swift rise in that company; he eventually became a partner to the “big boss.”
I’ve rarely heard of a wiser leader than this woman. She had a fine capacity for 3rd Alternative thinking. How easy it would have been for her either to fight my friend or just to give in to his request. Instead, she sensed the possibility of a dramatic win-win. Rather than haggling over the existing pie, she could envision the prospect of a much bigger pie. She suspected that combining my friend’s needs and energies with the client’s needs might well produce growth for everyone. The eventual result was a whole new line of business and a partner who increased his worth to the company every year. From what I know of this young man’s contribution to his firm, he was ultimately responsible for doubling its size. via strategy-business.com
Strategic Management and Innovation Solutions 
Traditionally, when facing low-cost competition companies try to cut costs or innovate. This trap leads them in never-ending cycles of competitive disadvantage. Survival requires smarter and subtler responses. Contact InnoThink Group to discuss your options or call 719-649-4118. We are a leading Strategic Management and Innovation Consulting Firm. 

Thursday, April 26, 2012

Sparking creativity in teams: An executive’s guide

Senior managers can apply practical insights from neuroscience to make themselves—and their teams—more creative.

Although creativity is often considered a trait of the privileged few, any individual or team can become more creative—better able to generate the breakthroughs that stimulate growth and performance. In fact, our experience with hundreds of corporate teams, ranging from experienced C-level executives to entry-level customer service reps, suggests that companies can use relatively simple techniques to boost the creative output of employees at any level.

The key is to focus on perception, which leading neuroscientists, such as Emory University’s Gregory Berns, find is intrinsically linked to creativity in the human brain. To perceive things differently, Berns maintains, we must bombard our brains with things it has never encountered. This kind of novelty is vital because the brain has evolved for efficiency and routinely takes perceptual shortcuts to save energy; perceiving information in the usual way requires little of it. Only by forcing our brains to recategorize information and move beyond our habitual thinking patterns can we begin to imagine truly novel alternatives.1

In this article, we’ll explore four practical ways for executives to apply this thinking to shake up ingrained perceptions and enhance creativity—both personally and with their direct reports and broader work teams. While we don’t claim to have invented the individual techniques, we have seen their collective power to help companies generate new ways of tackling perennial problems—a useful capability for any business on the prowl for potential game-changing growth opportunities.

Immerse yourself

Would-be innovators need to break free of preexisting views. Unfortunately, the human mind is surprisingly adroit at supporting its deep-seated ways of viewing the world while sifting out evidence to the contrary. Indeed, academic research suggests that even when presented with overwhelming facts, many people (including well-educated ones) simply won’t abandon their deeply held opinions.2

The antidote is personal experience: seeing and experiencing something firsthand can shake people up in ways that abstract discussions around conference room tables can’t. It’s therefore extremely valuable to start creativity-building exercises or idea generation efforts outside the office, by engineering personal experiences that directly confront the participants’ implicit or explicit assumptions.

Consider the experience of a North American specialty retailer that sought to reinvent its store format while improving the experience of its customers. To jump-start creativity in its people, the company sent out several groups of three to four employees to experience retail concepts very different from its own. Some went to Sephora, a beauty product retailer that features more than 200 brands and a sales model that encourages associates to offer honest product advice, without a particular allegiance to any of them. Others went to the Blues Jean Bar, an intimate boutique retailer that aspires to turn the impersonal experience of digging through piles of jeans into a cozy occasion reminiscent of a night at a neighborhood pub. Still others visited a gourmet chocolate shop.

These experiences were transformative for the employees, who watched, shopped, chatted with sales associates, took pictures, and later shared observations with teammates in a more formal idea generation session. By visiting the other retailers and seeing firsthand how they operated, the retailer’s employees were able to relax their strongly held views about their own company’s operations. This transformation, in turn, led them to identify new retail concepts they hadn’t thought of before, including organizing a key product by color (instead of by manufacturer) and changing the design of stores to center the shopping experience around advice from expert stylists.

Likewise, a team of senior executives from a global retail bank visited branches of two competitors and a local Apple retail store to kick off an innovation effort. After recording first impressions and paying particular attention to how consumers were behaving, the bankers soon found themselves challenging long-held views about their own business. “As a consumer, I saw bank branches, including our own, differently,” said one of the executives. “Many of us in the industry are trying to put lipstick on a pig—making old banking look new and innovative with decorations but not really changing what’s underneath it all, the things that matter most to consumers.”

We’ve seen that by orchestrating personal encounters such as these, companies predispose their employees to greater creativity. For executives who want to start bolstering their own creative-thinking abilities—or those of a group—we suggest activities such as:

  • Go through the process of purchasing your own product or service—as a real consumer would—and record the experience. Include photos if you can.
  • Visit the stores or operations of other companies (including competitors) as a customer would and compare them with the same experiences at your own company.
  • Conduct online research and gather information about one of your products or services (or those of a competitor) as any ordinary customer would. Try reaching out to your company with a specific product- or service-related question.
  • Observe and talk to real consumers in the places where they purchase and use your products to see what offerings accompany yours, what alternatives consumers consider, and how long they take to decide.
Overcome orthodoxies

Exploring deep-rooted company (or even industry) orthodoxies is another way to jolt your brain out of the familiar in an idea generation session, a team meeting, or simply a contemplative moment alone at your desk. All organizations have conventional wisdom about “the way we do things,” unchallenged assumptions about what customers want, or supposedly essential elements of strategy that are rarely if ever questioned.

 

By identifying and then systematically challenging such core beliefs, companies can not only improve their ability to embrace new ideas but also get a jump on the competition. (For more, see sidebar, “Challenging orthodoxies: Don't forget technology.”) The rewards for success are big: Best Buy’s $3 million acquisition of Geek Squad in 2002, for example, went against the conventional wisdom that consumers wouldn’t pay extra to have products installed in their homes. Today, Geek Squad generates more than $1 billion in annual revenues.

A global credit card retailer looking for new-product ideas during the 2008 economic downturn turned to an orthodoxy-breaking exercise to stir up its thinking. Company leaders knew that consumer attitudes and behavior had changed—“credit” was now a dirty word—and that they needed to try something different. To see which deeply held beliefs might be holding the company back, a team of senior executives looked for orthodoxies in the traditional segmentation used across financial services: mass-market, mass-affluent, and affluent customers. Several long-held assumptions quickly emerged. The team came to realize, for example, that the company had always behaved as if only its affluent customers cared deeply about travel-related card programs, that only mass-market customers ever lived paycheck to paycheck (and that these customers didn’t have enough money to be interested in financial-planning products), and that the more wealthy the customers were, the more likely they would be to understand complex financial offerings.

The process of challenging these beliefs helped the credit card retailer’s executives identify intriguing opportunities to explore further. These included simplifying products, creating new reward programs, and working out novel attitudinal and behavioral segmentations to support new-product development (more about these later).

Executives looking to liberate their creative instincts by exploring company orthodoxies can begin by asking questions about customers, industry norms, and even business models—and then systematically challenging the answers. For example:

  • What business are we in?
  • What level of customer service do people expect?
  • What would customers never be willing to pay for?
  • What channel strategy is essential to us?
Use analogies

In testing and observing 3,000 executives over a six-year period, professors Clayton Christensen, Jeffrey Dyer, and Hal Gregersen, in a Harvard Business Review article,3 noted five important “discovery” skills for innovators: associating, questioning, observing, experimenting, and networking. The most powerful overall driver of innovation was associating—making connections across “seemingly unrelated questions, problems, or ideas.”

Our own experience confirms the power of associations. We’ve found a straightforward, accessible way to begin harnessing it: using analogies. As we’ve seen, by forcing comparisons between one company and a second, seemingly unrelated one, teams make considerable creative progress, particularly in situations requiring greenfield ideas. We’re not suggesting that you emulate other organizations—a recipe for disappointment. Rather, this approach is about using other companies to stir your imagination.

We recently used this technique in a brainstorming session involving the chief strategy officers (CSOs) of several North American companies, including a sporting-goods retailer. The rules were simple: we provided each executive, in turn, with a straightforward analogy the whole group would use to brainstorm new business model possibilities. When it was the turn of this retailer’s CSO, we asked the group to consider how Apple would design the company’s retail formats. The resulting conversation sparked some intriguing ideas, including one the retailer is considering for its stores: creating technology-assisted spaces, within its retail outlets, where customers can use Nintendo Wii–like technology to “try out” products.

Of course, most companies will use this tactic internally—say, in idea generation sessions or problem-solving meetings. Executives at the credit card retailer, for example, created analogies between their company and other leading brands to make further headway in the areas the team wanted to explore. By comparing the organization to Starwood Hotels, the executives imagined a new program that rewarded customers for paying early or on time (good behavior) instead of merely offering them bonus points for spending more (bad behavior). Similarly, by comparing the company’s back-office systems to those of Amazon.com and Google, the credit card retailer learned to think differently about how to manage its data and information in ways that would benefit consumers as they made product-related decisions and would also give the company valuable proprietary data about their behavior. Together, these insights led to several ideas that the company implemented within two months while also giving it a portfolio of longer-term, higher-stakes ideas to develop.

Analogies such as those the credit card retailer used are quite straightforward—just draft a list of questions such as the ones below and use them as a starting point for discussion.

  • How would Google manage our data?
  • How might Disney engage with our consumers?
  • How could Southwest Airlines cut our costs?
  • How would Zara redesign our supply chain?
  • How would Starwood Hotels design our customer loyalty program?
Create constraints

Another simple tactic you can use to encourage creativity is to impose artificial constraints on your business model. This move injects some much-needed “stark necessity” into an otherwise low-risk exercise.

Imposing constraints to spark innovation may seem counterintuitive—isn’t the idea to explore “white spaces” and “blue oceans”? Yet without some old-fashioned forcing mechanisms, many would-be creative thinkers spin their wheels aimlessly or never leave their intellectual comfort zones.

The examples below highlight constraints we’ve used successfully in idea generation sessions. Most managers can easily imagine other, more tailored ones for their own circumstances. Start by asking participants to imagine a world where they must function with severe limits—for instance, these:

  • You can interact with your customers only online.
  • You can serve only one consumer segment.
  • You have to move from B2C to B2B or vice versa.
  • The price of your product is cut in half.
  • Your largest channel disappears overnight.
  • You must charge a fivefold price premium for your product.
  • You have to offer your value proposition with a partner company.

The credit card retailer tried this approach, tailoring its constraints to include “We can’t talk to customers on the phone,” “We can’t make money on interchange fees,” and “We can’t raise interest rates.” In addition to helping company managers sharpen their thinking about possible new products and services, the exercise had an unexpected benefit—it better prepared them for subsequent regulatory legislation that, among other provisions, constrained the ability of industry players to raise interest rates on existing card members.

Creativity is not a trait reserved for the lucky few. By immersing your people in unexpected environments, confronting ingrained orthodoxies, using analogies, and challenging your organization to overcome difficult constraints, you can dramatically boost their creative output—and your own.

Traditionally, when facing low-cost competition companies try to cut costs or innovate. This trap leads them in never-ending cycles of competitive disadvantage. Survival requires smarter and subtler responses. Contact InnoThnk Group to discuss your options. We are a leading strategic Management and Innovation Consulting Firm. 

Tuesday, April 24, 2012

Peter Drucker on Leadership and Strategic Resilience

“The most important task of an organization’s leader is to anticipate crisis. Perhaps not to avert it, but to anticipate it. To wait until crisis hits is abdication. One has to make the organization capable of anticipating the storm, weathering it, and in fact, being ahead of it. You cannot prevent a major catastrophe, but you can build an organization that is battle-ready, that has high morale, that knows how to behave, that trusts itself and where people trust one another. In military training, the first rule is to instill soldiers with trust in their officers, because without trust they won’t fight.”

—Peter F. Drucker

Even in the most structured, command-and-control environments, like the military, those in the field are the ones who have to carry out the activities of the organization. They are called on to make many key decisions—often without the benefit of a detailed blueprint. Without trust in the leadership, soldiers or workers cannot be expected to stay and fight on.

One of my favorite examples of how trust played a significant role in a leader’s success was withAbraham Lincoln during the Civil War. His predecessor, James Buchanan, was basically in denial about the eventuality of war. Thus, there was very little preparation for combat in the North. The Confederacy, on the other hand, had prepared for quite sometime before war erupted. The result: Even though the North had superior forces and resources, the South was able to fight off the North more effectively than most expected.

The South also had a cadre of very well trained generals like Robert E. LeeJoseph Johnstonand Stonewall Jackson, who worked hard to gain the trust of their troops, and they were able to prolong the war and nearly triumph.

President Lincoln was very fortunate to eventually be able to lean on the skills and strategies of his own military leaders, like Ulysses S. Grant, as well as on his ability to earn and keep the trust of the people of the Union. He was known as “Honest Abe” for a reason, and his trustworthiness greatly enhanced his ability to gain support for the war and ultimately secure the victory. Without the trust that Northerners had in Lincoln, we’d possibly be two or even three countries today. via thedx.druckerinstitute.com

 Want to increase growth and avoid commoditization? Want to out compete your competitors? Want to bring new products and services to market faster? Want to be more agile? Need a compelling speaker? Hire Innovation and Growth Speaker Jim Woods. Jim works confidentially with start ups, governments as well as profit and for profit enterprises.

Visit our website:www.innothinkgroup.com Executive and Business Coaching: http://ow.ly/anBpK

Jim Woods is president and founder of InnoThink Group. A global management consulting firms specialized solely in helping organizations of all sizes in all industries catalyzing top line growth through strategic innovation and hypercompetition. Jim has over 25 years consulting experience in working with small, mid size and Fortune 1000 companies. He is a former U.S. Navy Seabee and grandfather of five. To arrange for Jim to speak at your next event or devise an effective growth strategy email or call us at 719-649-4118 for availability.james@innothinkgroup.com

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Drucker: Innovation Nation—Or Stagnation?

Nothing’s new in the kitchen. All the appliances, apart from the SaladShooter, were invented decades ago. The automobile isn’t much changed since the Model T.  All we’ve been doing is adding new ornaments to old innovations, and the days when technology gave rise to millions of new jobs are long gone.

That, at least, is the argument of economist Tyler Cowen in his new book, The Great Stagnation. A “PBS NewsHour” segment this week explored Cowen’s argument and posed a provocative question: “Why hasn’t recent technology created more jobs?”

Cowen’s answer is simple: We’re inventing new things, but not enough of them. We’ve picked the low-hanging fruit.  “The rate of progress has slowed down,” he said. “And this is our central economic problem today.”

But Erik Brynjolfsson, who runs MIT’s Center for Digital Business, sees plenty of innovation in the United States. “Tyler Cowen and a lot of the people who are focused on the great stagnation, I think, are sort of backward-looking at the mature technologies that are at the peak of their S-curve, rather than the new technologies that are just emerging,” he told the NewsHour. In other words, inventions abound, but they’re just getting off the ground.

Image source: dreamstime.com

Peter Drucker—though he well understood the notion of the S-curve of technologies, a notion first analyzed by Russian economist Nikolai Kondratieff in the early 20th century—would have probably had an altogether different take on the matter. “The high-tech industries . . . have so far not been able to generate more jobs than the old industries have been losing,” Drucker wrote in his 1985 classic, Innovation and Entrepreneurship. “All projections indicate that they will not do much more for long years to come, at least for the rest of the century.” via thedx.druckerinstitute.com

Want to out compete your competitors? Want to bring new products and services to market faster? Want to be more agile? Need a compelling speaker? Hire Innovation and Growth Speaker Jim Woods. Jim works confidentially with start ups, governments as well as profit and for profit enterprises.

Visit our website:www.innothinkgroup.com Executive and Business Coaching: http://ow.ly/anBpK

Jim Woods is president and founder of InnoThink Group. A global management consulting firms specialized solely in helping organizations of all sizes in all industries catalyzing top line growth through strategic innovation and hypercompetition. Jim has over 25 years consulting experience in working with small, mid size and Fortune 1000 companies. He is a former U.S. Navy Seabee and grandfather of five. To arrange for Jim to speak at your next event or devise an effective growth strategy email or call us at 719-649-4118 for availability.james@innothinkgroup.com

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Lessons in Innovation: Peter Drucker Goes Bananas - Rick Wartzman

In his latest column for Forbes.com, Drucker Institute Executive Director Rick Wartzman examines an investment by Dole Food in a company called Healthy Foods LLC, whose so-called Yonanas machine turns bananas that are starting to turn soft and brown—consumers’ No. 1 complaint about the fruit—into a tasty frozen dessert.

With its investment, Dole is illustrating a principle that Peter Drucker “thought every company should aggressively seek to implement: finding ‘hidden opportunities’ in problems or threats,” Wartzman writes.

“Any threat to a business or to an industry is an indication of a change in the environment: in markets, in customers or in knowledge,” Drucker wrote in his 1964 book Managing for Results. “If a business continues to stick to the existing, traditional, established—or denies that anything else is possible—a change may destroy it in the end. But a change should always be an opportunity to do something different and profitable.”

Wartzman notes that “for Dole, the fact that bananas become mushy may not constitute a truly dire threat, but it certainly hasn’t helped business at a time when per-capita consumption of the fruit has been declining.” “In most households,” Wartzman quotes Dole executive Marty Ordman as saying, “bananas with brown spots are relegated to the wastebasket, and Dole research has shown that consumers abhor waste.”

“Once they own a Yonanas maker, however, consumers actually seek out bananas that are already quite ripe or even spotted,” Wartzman explains. “Grocers can now continue to display older bananas as ‘Yonanas-ready’ or package and sell frozen bananas as a value-added product. All of this is expected to drive higher banana sales, along with sales of other Dole frozen fruits.”

According to Wartzman, among the machine’s top fans is Dole Chairman David Murdock, “who obviously understands what Drucker meant when he wrote: ‘Dangers and weaknesses indicate where to look for business potential.’

“Are you actively hunting for such potential?” Wartzman asks in conclusion. “As the folks at Dole can attest, you’d be wise to keep your eyes—if not your bananas—peeled.” via thedx.druckerinstitute.com

Want to out compete your competitors? Want to bring new products and services to market faster? Want to be more agile? Need a compelling speaker? Hire Innovation and Growth Speaker Jim Woods. Jim works confidentially with start ups, governments as well as profit and for profit enterprises.

Visit our website:www.innothinkgroup.com Executive and Business Coaching: http://ow.ly/anBpK

Jim Woods is president and founder of InnoThink Group. A global management consulting firms specialized solely in helping organizations of all sizes in all industries catalyzing top line growth through strategic innovation and hypercompetition. Jim has over 25 years consulting experience in working with small, mid size and Fortune 1000 companies. He is a former U.S. Navy Seabee and grandfather of five. To arrange for Jim to speak at your next event or devise an effective growth strategy email or call us at 719-649-4118 for availability.james@innothinkgroup.com

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