Posts Tagged ‘matrixthinking’

Innovation – Invention – Collaboration

Tuesday, May 14th, 2019

Innovation – Invention – Collaboration
By Roger La Salle
www.innovationtraining.com.au
www.matrixthinking.com

Open Innovation, the term used when companies and people literally open their problems and issues to the world looking for advice and solutions is possibly the most obvious form of collaboration.

There are a lot of issues with this so called open innovation model, a prime one of course is ownership of IP. This has the potential to be a minefield if not properly understood and managed.

However, before we go too far down the path of collaboration and open innovation it may first be useful to agree on what we even mean by the word innovation. Innovation, a word that seems to have been corrupted by so many, achieving nothing more that turning the simple into the complex!

It can be argued that Innovation is the basis for all things new and better, but what inspires innovation and new ideas? More to the point, what is the link between an innovative or inventive idea and an outcome?

If we think of innovation when applied to building a business and making money, which is probably what inspires most innovators, then we need to think about the risks in business.

In most cases when an idea is being pursued and a technology development is being undertaken, whether it be an IT solution, new App, a tangible product or a new service, in essence there are only two risks that need to be considered.

The first is what we may refer to as technical risk, which means can the technologist achieve the desired outcome?

In science and technology, for the most part the technologist will deliver a solution or at least will be able to give some insight as to the risks involved. For example if we were to ask the technologist to give us anti-gravity boots they would easily be able to assign the risks associated with achieving an outcome. Of course in this case the risk would be enormous.

On the other hand if we asked a clock to be developed with hands that were in fact LED strips that were clearly visible in darkness, the answer would be that this is achievable with no technical risk.

In short, technical risk is something we can generally measure and assign a degree of risk.

However, assuming I did achieve the technical outcome with my innovation, the real questions to be asked, and the ones that too many innovators and even large companies get so wrong so often are “can I sell it?” – “will there be a market?”

Market risk is without doubt out the single biggest risk in bringing new products to market.

With this in mind we may be able to coin a definition of innovation that has the effect of reducing market risk and with that we can explore the opportunity landscape to hopefully create successful innovation.

When we look at some products from the past, Google, the i-Phone, MasterCard and Visa, Nokia, Seiko, the IBM PC and Windows, one thing these all have in common is that none we first to market. Indeed all were followers of some prior art and yet all these were great successes. In short the secret to mitigating market risk is to find a product or service that everybody is buying and simply change it in some way to add value.

Thus a definition for innovation can follow.

The common synonyms for innovation are improvement or advancement. Further, if we take it that people buy things because they see value for money, then perhaps the best definition for innovation is “Change that Adds Value”. Indeed this derivation and definition was coined in my book “Think New” many years ago. This definition has now been adopted by many organisations and innovation practitioners worldwide.

Whereas innovation may be about making changes for improvement, inventions are more about novelty. Novelty of course is an essential ingredient to a successful patent application. Having said that, there are many innovations that do contain elements of novelty and are thus also patentable. Indeed one may argue that there are few absolutely new inventions, though a few that may fall into this category might be the electric light bulb, the transistor device, the atomic bomb, RADAR and the LASER.

Given that we may have a better understanding of innovation the task now falls to the creation of innovations. How does one do that and why is collaboration so vital to successful innovation outcomes?

The secret to this comes from three elements, all essential ingredients that underpin successful innovation:
• Observation
• Knowhow borne of experience
• Connections or collaborations

Observation
The key to finding opportunities for innovation lies in observation. That is, looking at the way people interact with the world, with products and services and finding the gaps and value added opportunities. Of course the idea embodied in the relatively new concept of Design Thinking asks one to look at the customer. However the fact is that from my reading of this methodology, what it fails to do is to ask how one looks at the customer. Furthermore it should also ask you to look at the customer’s customer. For example, is the retailer your customer or the purchaser and user of your product? The packaging industry seems to have worked that one out, for example in attending to supermarket shelf storage space and customer convenience in opening and storing products!

Indeed there are five things that Design Thinking seems to miss in exploring customer behaviour and the way people interact with products and the world. These are in my book “Think Next” published over a decade ago.

• Predictable activity
• Widespread activity
• Repetitious activity
• Comparative activity
• Trends

If we explore our customer with these five, what I refer to as “seeds” of opportunity, the game gets a lot easier. It’s further made easier if you then use the eight thinking triggers I refer to as “Catalysts” to stimulate thoughts about these seeds.

This is what I refer to as “opportunity Capture”.

Knowhow borne of experience
Young children are often very good at seeing what to them appears obvious, whereas people who have been doing the same thing the same way for too long often seem prone to overlook the obvious.

The young, the uninitiated and those untarnished with tradition are often very good at seeing what may be possible, but what they lack is knowledge and experience in looking at how such opportunities may be addressed and what seems sensible and may be possible.

This is where experience and an older head is so valuable in innovation outcomes.

There is a great saying, “knowledge is not wisdom, wisdom comes from experience and experience comes with age.

Below are some examples that may illustrate the point of why knowledge borne of experience is so important.

• The inventor who correctly realised that the lead on a hairdresser’s hairdryer was a problem is a case in point. His solution was to have a battery operated hair dryer. What his lack of knowledge failed to identify was that even a car battery would not have had the capacity to run a hair dryer even though the idea may have had merit. As it happened the inventor did toil away at this innovation for far too long and spent quite a lot of money before acquiring the knowledge that at this point in battery development, his idea was simply impractical.

• A building company with very large innovation teams, in fact four separate teams, which were trying to find ways to identify if scaffolding that had been put in place and certified as safe was subsequently moved by subcontractors, and perhaps rendered unsafe. They had been wrestling with the problem without a solution. When the problem was put to an older head the answer was simple, something the inexperienced innovation teams had never even heard of. Tie the scaffolding to the building with “Tamper Tape” that fractures on movement. This was a great solution, but one that the young innovators were simply too inexperienced to have even considered.

• A fellow who proposed a warning device that alerted parents if a child had unfastened their seat belt. This was nice in theory, but what was overlooked was that many cars already have a “person sitting on the seat but seat belt unfastened” alarm. Perhaps an easier solution could be a seat belt clip latch that requires stronger hands to undo, or maybe a two handed operation action much like a safety interlock on a power tool. We refer to this as “re-question”. It asks you to explore the real issue and decide what is really the ideal or best question to be asked in addressing a problem?

In my world we refer to the type of connections from problem to solution as “connecting the dots”.

One of the great skills of clever entrepreneurs and innovators is to see the linkages between seemingly unrelated issues. This is where broadly skilled technologists and open minded thinkers come to the fore.
For example, suppose I run a lumber business, the business of cutting up trees to provide timber for the building industry. What possible connection does that have with mathematics? Perhaps none you may think, or certainly the old fashioned timber manager may have thought. But in fact linear programming, quite an old science these days, when employed in that industry can optimise the way timber is cut to provide massive additional profits. But in the closed non-collaborative model, such knowledge may never be acquired.
Similarly,
• The technologies developed in putting a man on the moon. How could that possibly connect to the business of pots and pans? The answer – Teflon coating
• Clocks and radio paging, is there a connection? Indeed there is. Imagine having a clock equipped with a radio paging receiver to receive time signals and thus keep perfect time and even update for Summer Time changes. Such clocks were developed in Australia long before we had cell phones with perfect time
• The packaging business and home insulation? Of course, use bubble wrap as the ideal insulator. It’s light weight, cheap, easy to install and with fire retardant grades also available.
• Optics and home insulation? Of course, use a reflective coating on one side of the bubble wrap to reflect radiated heat.
• Physiotherapy and the reduction of carbon emissions?
• The tooth brush and ceramic crystals?
• Extruded plastic “core flute” sheeting and aluminium extrusions?

The reader can ponder the latter three, but the connection in each of these cases has spawned real businesses.
There is an endless list of these seemingly unrelated disciplines that can be connected with appropriate knowledge and collaboration between disciplines
Indeed this is why the new paradigm of “Opportunity Capture” is now emerging as the preferred approach to the more narrow discipline of traditional innovation.
There are endless examples like this which goes to show that perhaps inexperienced people may have great value in identifying possible innovation opportunities but really fail to deliver when it comes to real and viable outcomes.

Connections and Collaborations
There are few cases where one individual or even one organisation can solve all the problems and go from mind to market with an idea without assistance, or perhaps better said, collaboration.

Possible the best example is in the auto sector. Auto makers are really just assemblers of parts made in most cases by third parties. No auto maker can make all the chassis components, the body work the paint or the rubber, the bushes, shock absorbers, alternators, windscreen wipers, the complex electronics, the air conditioners and even something as simple as the seats and the seat belts. Of course tyres, bearings even engines parts are provided by collaborating third party suppliers.

Collaboration and finding the best parties to assist you on your innovation journey is essential whether it is in the design, the engineering, the manufacture, the business planning and even the sale and marketing. Indeed even the very largest manufactures from food to cosmetics usually outsource their packaging and even advertising campaigns. Collaboration at its best.

Collaboration is definitely the name of the game when I comes to successful innovation outcomes.
**** ends ****

Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organizations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and Business Development, is the author of four books, and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies, both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panelist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast.

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The mystical power of brand!

Saturday, September 22nd, 2018

The mystical power of “Brand”
By Roger La Salle
www.innovationtraining.com.au
www.matrixthinking.com

In a previous blog we defined this most difficult of words, “marketing”.

If you ask somebody to define this word the general response would be ways of marketing, such as digital, the 4 P’s and so on. But this are not a definition. These are just some of the methods.

The best definition of marketing I ever heard and have now embraced, courtesy of a colleague, a professor in Medellin Colombia is”

“The art of winning the minds of people to have unconditional love for your offering”
Ref: Prof Paola Podesta, Colombia

If we look at this definition two companies seem to excel at achieving this: McDonalds and Apple.

Brand?
The mystical power of brand is amazing and hard to quantify.

There is an old saying, “Nobody ever got fired for buying IBM”. There is a lot of truth to that and for good reasons.

When large companies look to purchase equipment that may be vital to the functioning of their business what they want, apart from “fit for purpose” is surety.

This surety takes a number of forms:
1. These are the biggest with a history of survival and success
2. It’s a safe decision
3. I am protecting my job in selecting one of the “big boys”
4. They will still be here tomorrow to support me.

These brand decisions are powerful and perhaps justifiable drivers.

A good example of this was in Australia when the last National Census was undertaken. The contract to deliver the IT services was given to one of the major software providers. From all accounts, on census night despite the best assurances, the internet was clogged and the outcome was a reported disaster. But most likely the choice by those in Government to use a major brand may have saved their jobs.

Valuing Brand?
There have been many studies on this subject but nothing concrete emerges.

For example, how do you value a ROLEX mechanical watch when a $5.00 quartz watch from the local service station most likely keeps better time and never needs to be serviced?

Mercedes Benz was once a statement of wealth. Mercedes has now commoditized its range and brand with models now affordable by most. Mercedes are trading on their brand equity, only the future will tell if this dilution of their status will ultimately be for the good.

Finally, airlines.

Reportedly, American Airlines saved 643,000 liters of fuel annually when they switched to a light weight paper for their in-flight magazine. Yet for many years American Airlines aircraft were largely unpainted, now they are almost universally painted all over adding more than one ton of weight to each, just to signal a Brand?

QANTAS and pretty well all airlines do the same.

Brand is vital. Protect it carefully and make sure that every customer experience is a good one.
Word of mouth marketing is the most powerful brand builder you will ever find.

**** ENDS ****

Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organizations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and Business Development, is the author of four books, and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies, both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panelist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast

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So – That’s the problem!

Saturday, September 22nd, 2018

So that’s the problem – No surprise!
By Roger La Salle
www.innovationtraining.com.au
www.matrixthinking.com

As readers of this blog would know I have always expressed concern about the Open Innovation model for a number of reasons, one being the ownership of the IP. Indeed a number of companies shun ideas from outside the organisation for fear of becoming involved in IP disputes.

It can become even more complicated when possible consequential ideas result. That is, ideas not directly related to the original but perhaps one where the initial suggestion led to an inspiration for something entirely unrelated. Indeed it is for this reason that many companies won’t sign non-disclosure agreements.

The following example may put this into perspective.

Suppose somebody suggests to me the idea of a drinking straw with micro holes in the side to aerate the drink as I suck. Perhaps not a good idea, but rejected in any case. However this may stimulate me to think of drinking straws in general and conceive one with an internal wall of flavor. Clearly the latter is not the original idea, but its inspiration may have come from having me think of drinking straws in a new way. This alone may lead to a costly dispute about ownership and IP. Such disputes are always difficult to adjudicate so instead, companies simply avoid the issue altogether.

As every budding entrepreneur and inventor may know, it’s often hard to get companies to embrace ideas from outside, for various reasons. The following extract from an article I recently received puts a different light on the issue. Perhaps it’s “not invented here syndrome”, with ideas from outside being seen as a threat to the jobs of the so called internal innovators or innovation departments.

To quote from an article by Hila Lifshitz-Assaf of 1 Stern School of Business, NY

……………..” After months of observation and study, researchers discovered the core issue behind the resistance: (to external ideas) some internal scientists and engineers believed open innovation to be a threat to their identity as problem solvers for the organization.

….…The underlying problem was one of identity. ….…scientists viewed themselves as “problem solvers.” But if the problems were being solved by those outside the organization, it presented an existential issue for internal problem solver? How can a problem solver be a problem solver if they are outsourcing their innovation solutions?”

This article certainly raises an important point and one that many entrepreneurs will have faced.

The real issue is the question it leads to and one for which senior executive and Innovation Managers must be held to account. For whom are you working, yourself or the organisation?

**** ENDS ****

Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organizations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and Business Development, is the author of four books, and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies, both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panelist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast.

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So that’s the problem – No surprise there!

Friday, August 24th, 2018

So that’s the problem – No surprise!
By Roger La Salle
www.innovationtraining.com.au
www.matrixthinking.com

As readers of this blog would know I have always expressed concern about the Open Innovation model for a number of reasons, one being the ownership of the IP. Indeed a number of companies shun ideas from outside the organisation for fear of becoming involved in IP disputes.

It can become even more complicated when possible consequential ideas result. That is, ideas not directly related to the original but perhaps one where the initial suggestion led to an inspiration for something entirely unrelated. Indeed it is for this reason that many companies won’t sign non-disclosure agreements.

The following example may put this into perspective.

Suppose somebody suggests to me the idea of a drinking straw with micro holes in the side to aerate the drink as I suck. Perhaps not a good idea, but rejected in any case. However this may stimulate me to think of drinking straws in general and conceive one with an internal wall of flavor. Clearly the latter is not the original idea, but its inspiration may have come from having me think of drinking straws in a new way. This alone may lead to a costly dispute about ownership and IP. Such disputes are always difficult to adjudicate so instead, companies simply avoid the issue altogether.

As every budding entrepreneur and inventor may know, it’s often hard to get companies to embrace ideas from outside, for various reasons. The following extract from an article I recently received puts a different light on the issue. Perhaps it’s “not invented here syndrome”, with ideas from outside being seen as a threat to the jobs of the so called internal innovators or innovation departments.

To quote from an article by Hila Lifshitz-Assaf of 1 Stern School of Business, NY

……………..” After months of observation and study, researchers discovered the core issue behind the resistance: (to external ideas) some internal scientists and engineers believed open innovation to be a threat to their identity as problem solvers for the organization.

….…The underlying problem was one of identity. ….…scientists viewed themselves as “problem solvers.” But if the problems were being solved by those outside the organization, it presented an existential issue for internal problem solver? How can a problem solver be a problem solver if they are outsourcing their innovation solutions?”

This article certainly raises an important point and one that many entrepreneurs will have faced.

The real issue is the question it leads to and one for which senior executive and Innovation Managers must be held to account. For whom are you working, yourself or the organisation?

**** ENDS ****

Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organizations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and Business Development, is the author of four books, and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies, both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panelist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast.

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Innovation Man – Not!

Thursday, February 1st, 2018

Innovation Man – Not?
By Roger La Salle
www.innovationtraining.com.au

A New Year is upon us. Perhaps this may be the ideal time to take a breath and look at your strategy for growth!

Check this out
If innovation is one of your strategic pillars then remember that it’s outcomes that matter, not inputs. Indeed there is an old but must see IBM video that speaks a lot to innovation endeavors. The link is at https://www.youtube.com/watch?v=XjKh11jpqfc

Note, the intent is brilliant but unfortunately the outcomes are still a work in progress – will it ever be done?

The fact is, innovation does not happen even with deeply inspired people sitting in a darkened room singing the “What if I”….” hymn. “What if I … what……”? We may well ask?

Have a process
There is nowhere to go with such an open ended question. The secret to having outcomes is to finish the sentence with a full body of stimulus words each of which demands a specific answer. In fact properly done there are over 100 stimulus words that can finish the “What if I…” sentence. If you use these you can guarantee innovations will flow, literally as a river of opportunity.

So too in exploring your customer. The key to success in innovation is to understand what your customer wants. One approach is to simply ask. But this is not without its issues, including the one we so often encounter where in many cases customers seldom really know what they really want.

The secret to satisfying your customers’ needs lies in observation, what we refer to as “opportunity capture” with more than 40 ways to observe your customer. But it should not stop there, you also may need to be exploring your customer’s customer to get to the real source of true opportunity.

Finding new opportunities with which to explore and grow your business is the easy part. The real skill comes in evaluating these opportunities underpinned by the simple “technology diffusion model” – a numerical score card for new initiatives to be used as a precursor to your commercialization strategy.

None of this is difficult but your endeavors must be backed by sound judgement and proper risk management. This needs to be coupled with the clear understanding of the single biggest reason for failed innovations, the customer or perhaps better said, Market Risk.

What’s the message?
Now’s the time to review your business strategy and don’t be fooled into thinking that innovation is reserved for the gifted. We are all users of products and services. Engineers, scientist, accountants, lawyers, children, indeed everybody and anybody may be your customer. Use the right tools and outcomes are guaranteed.

****ENDS****

Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organizations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and Business Development, is the author of four books, and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies, both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panelist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast

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It’s not just products

Monday, September 25th, 2017

It’s not just products!
By Roger La Salle
www.innovationtraining.com.au
Building a business
Research conducted by the Chief Scientist of Australia and no doubt by many other showed that companies that replace their products at the greatest rate, the most innovative if you like, are the ones the grow the fastest with the greatest profit.

Of course there are many competitions in Australia and elsewhere that promote the so called, most innovative companies. Indeed some actually charge a fee to enter such a competition which possibly “smacks a little like google Awards in paying to be noticed.

None the less, it doesn’t take a competition to see who are the most innovation operators in Australia. McDonalds would be my No1, a company that brings out some new product or a menu change or highlight on almost a weekly basis. Of course Apple, a company with no product in its stable much more than 12 months old are also at the top of the tree.

What else?
However, apart from innovating your products there are many other ways to achieve sustained growth, but many of these are overlooked or simple not on the RADAR of business executives clambering to stay ahead of the game.

Some of these include, complementing you offering, which is in effect selling something that captures the mind set of your customer.

Yet another is to accessorise you products or indeed accessorise the products of any successful business. The company Belkin comes to mind as a company one may well argue may not even exit but for the accessories it has developed for Apple and like products.

A further means for growth is to enhance the channel though which you communicate and reach your customer. For instance insurance companies and banks are perfectly places to achieve this but to date have been very poor in implementing this powerful growth strategy, possibly because they are too focused on their banking business and have failed to properly look outside the square.

Finally, there are new markets.
The world is a very small place these days with communication and transport now so fast, cheap and reliable.

An important way to grow your business is to grow your geographical foot print, but too often, again the pressure of survival in an ever a more aggressive environments restricts many companies, especially the smaller ones from properly addressing the search for new markers.

What now?
Perhaps the rate of product churn is powerful growth mechanism but new products can be a risky, costly and time consuming business.

Remember, new products are just one business growth strategy, ignore the others at your peril.
**** ENDS ****

Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organizations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and Business Development, is the author of four books, and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies, both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panellist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast.

**** ENDS ****

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Will the right product sell – it depends!

Tuesday, November 17th, 2015

Will the right product sell – it depends!
by Roger La Salle
www.matrixthinking.com

Incrementalism !
My last blog talked about finding the market need and of course the best way to do that is to find a product or service that is selling well and simply make it better, or “innovate it” if you like!

This is classic low risk business, unlike some of the disbelievers that scorn incremental innovation or making improvements to what is already well accepted, believe it or not, this strategy can be a game changing and highly disruptive strategy. Further, it’s virtually risk free.

Some game changing increments
Let’s take a product firmly embedded into every household in the 1920’s, the wireless. Let’s innovate that and add a picture, now you have TV. Highly disruptive and zero market risk. One could well argue the same about bringing colour to TV, or speech to movies and so on.

Let’s take the taxi for example, a commonly used means of transport, and innovate that offering to create UBER. In the accommodation industry “Airbed Accommodation”, again a new way of booking a room now made simple and with vastly reduced cost.

Similarly with the old fashioned telephone tethered to a wall by a cable, let’s remove the cable, classic incremental improvement with no market risk.

There can be no doubt that looking at everyday activities and creating small changes provides a great way to build a business with little or no risk. But there are caveats.

It’s not always easy
The above mentioned innovations, though in essence incremental and lacking in market risk, all took a long time and significant expense in development. However that said, the market risk in these was in essence negligible

Will any product be OK?
Unfortunately not, as too many innovators and start-ups find out the hard way.

Just taking a common product and making it better is not the answer without the essential ingredient of “a route to market”.

I am sure at times we have all been appalled at some of the well-respected branded products, brands we trust but that have delivered real trash to the market. One may ask, how can this happen, how can these products get through the supply chain? The answer lies in them already having an established distribution network.

As an American man many year ago once said to me, “It doesn’t matter what you’ve got, you gotta have distribution”.

What’s the lesson?
Whilst innovating widely used products or services may be the key to business success, unfortunately, if you lack that vital element of distribution you may find the going tough.

Perhaps you can use the internet and e-marketing to gain traction and thus disrupt the normal distribution model, but this usually a slow and can be very frustrating. Further, if your product involves low cost mass production and thus high start-up costs, your now back in the area of high risk!

**** END ****

Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organisations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and business development and is the author of four books and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panellist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast. www.matrixthinking.com

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Business Insight – Back to Basics

Monday, October 19th, 2015

Back to basics!
by Roger La Salle

The genesis?
The word innovation is used essentially as a catch all term that means anything that is new and different, most often involving some sort of technology.

Governments are all telling us the world is fast changing and we need to be at the cutting edge in bringing innovation to the fore.

Whilst this is a valuable message that hopefully stimulates research and entrepreneurship; unfortunately it’s too simplistic. We need to differentiate between research, invention and innovation as they are all quite different and have vastly different risk profiles.

Research is often the precursor to invention, but research is a high risk and high cost initiative with unacceptably long time to market for any but government supported organisations or very large multinationals.

Innovation on the other hand is low risk with short time to market; providing certain essential success criteria are present.

A new way to think!
It was this background that led to the development of Matrix Thinking©. Starting with a product innovation matrix this now extends to a host of matrix thinking platforms, many tailored to specific problems that need innovative thinking to resolve.

In my experience given a properly defined problem most clear thinking people or technologists will be able to develop a solution, or if it’s deemed to be near impossible, such as anti-gravity shoes, to be able to identify the difficulty in very short order at little or no cost

In business there is always a drive maintain market engagement with innovation as the fuel for this initiative. Keep the market moving by incrementally improving your offering at every turn. This is a safe low risk ploy so popular with car manufacturers inspiring them to forever change and refine their models for little reason other than to render earlier models obsolete.

What sets innovation apart?
The secret underpinning innovation is to recognise the single biggest risk in business, market risk. To mitigate market risk the secret is to find products or services that are selling well and simply make improvements.

Look at it from the customer’s perspective. If there are two near identical products on offer and one has maybe just one added feature and is similarly priced, or maybe even priced lower that the competitor, putting brand aside, which one will the customer buy? Clearly the innovated or improved one.

The secret to business is to incrementally and endlessly improve your product, or alternatively find one that is well received, perhaps from a competitor, and innovate that.

Remember, “Market Risk” is the single biggest risk in business, properly undertaken, innovation removes market risk, the key is the tools that properly drive innovative thinking

**** END ****

Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organisations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and business development and is the author of four books and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panellist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast. www.matrixthinking.com

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Business Insight – What does the customer want?

Friday, September 25th, 2015

What does the customer want?
by Roger La Salle

Is design everything?
In many cases organisations use design or appearance as the means to drive new customer engagement. Many of the auto makers did this for years and only in the last decade or so have they been actively engaged in real breakthrough innovation.

Manufacturers and service providers are now really focused on what the customer wants with design being just one feature.

The real problem is that many customers do not know what they want, and moreover, in most cases they don’t even know what’s possible.

A stunning example!
Many years ago I was general manager of a company where the managing director decided to take a very poorly designed and widely used industrial product of a competitor and completely redesign it to make it look fantastic and have wonderful ergonomic features.

The company spent upwards of a quarter of a million dollars in making the perfect product with submarine gated injection mouldings and colours that set it apart from the design, ergonomic and appearance perspective. A product a little bigger than a large whiteboard marker.

I left the company in disgust at the appalling waste of money all essentially based on design.

Needless to say, this one product soon took the entire market, driven not by its price or utility but by its fabulous design.

So design won – but did it?
I relocated to a new start up business and we took the concept of that product and added just one tiny thing, a stunning new feature. A feature or in fact a new function that the customers did not even know they wanted, nor indeed thought possible. Perhaps this is what we may refer to as “function led innovation”.

Interesting, and to prove a point I deliberately paid little attention to the actual design features. In short our product was very ugly and not at all ergonomic by comparison with the other.

So what was the outcome?
The outcome was clear and decisive. Our product with its one added function, even at a significantly higher price than the perfectly designed competitor took the entire market almost overnight.

How did we do this?
The answer lies again in the use an Opportunity Matrix, the subject of an earlier blog. This matrix asks you to explore your customers and your products in depth. Look at utility with design being just tiny one aspect of the innovation approach. Indeed there are at least 48 individual search tools to be explored apart from design, that’s real innovation and it goes far beyond finding out what the customers say they want.

What’s the message?
In today’s fast moving technology led environment, it really is hard for the customer to even know what’s possible.

Look at the big picture. It’s not enough to simply survey customers to establish their wants and needs. In order to really address your customer, you need to literally in essence become your customer; and we do this by the process of “tracking”. Just asking people is a waste of time that savvy businesses already well understand.

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Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organisations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and business development and is the author of four books and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panellist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast. www.matrixthinking.com

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Business Insight Your corporate mission may be killing your business!

Thursday, August 20th, 2015

Is your Corporate Mission killing your business?

by Roger La Salle

What’s your business Mission?
Most businesses have Mission or Vision statements as to what they are about, where they are headed and what they wish to achieve.

The aim of such an overarching statement is to align the organisation and its people to the common goal. Indeed the best definition of an organisation is “A Group of People Charged with a Common Goal” so what better way to align your people than to define and boldly state this in a mission statement.

What are the risks?
Whilst a mission or vision as the overarching statement of aim and purpose may be valuable, at least in the beginning, one may ask, should that be engraved in unchangeable tablets of granite?

Just like innovation, there should always be a need to explore new horizons and in many cases it may be important to revisit and perhaps redefine the mission as the business and business conditions change and evolve. Indeed a failure to do so may otherwise lock your people into a fixed mindset that may ultimately lead to your undoing.

Some notable examples
Some notable failures that “stuck to their knitting” may include KODAK that seemed locked into the mindset of selling and processing film and the paper and chemicals that enable this process. Perhaps many of the Swiss watch companies that ignored the emerging digital quartz technology are another example. So too the now rapidly declining printed media that thought the internet would never take off or maybe the makers of matches that ignored the butane lighter, and many more.

Indeed in the case of the latter example I once heard a marketing manager trying to convince his corporate masters (The Mission Makers) that they were in fact not in the match making business but in the business of flame on demand. He was laughed out of the room! Today that company no longer exists.

On the other hand look at some businesses with a wider view of the world that were not constrained by a narrowly focused corporate Mission; and so were able to reposition as things changed and new opportunities emerged.

None better than Google comes to mind. A business that started as a search engine but is now into anything they perceive as an opportunity. GE that started in engineering and moved to the finance sector. Nokia, formerly in the lumber business that set the bench mark in mobile phones. HP made its name in scientific instruments but is now huge in consumer electronics. The list of successful diversifications is endless, so too the list of failures.

Why Innovation?
The fact is; innovation needs to be applied across your entire business spectrum, especially in these days of such rapid change. Without flexibility or an innovative culture in your business there is a real risk of locking people into “Tunnel Mission” with a too rigidly defined corporate mission.

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Roger La Salle, trains people in innovation, marketing and the new emerging art of Opportunity Capture. “Matrix Thinking”™ is now used in organisations in more than 29 countries. He is sought after as a speaker on Innovation, Opportunity and business development and is the author of four books and a Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies both in Australia and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panellist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast. www.matrixthinking.com

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