Innovation for Growth


Archive for June 14th, 2005

1)     Roundabout and revolving doors

Innovation is all around us, however, sometimes we do not even think about it because we take them for granted…

The roundabout. How many times did you drive through a roundabout without thinking how amazingly clever it is! Lately is seems to be a fashion thing, in Spain they are implemented all over the place. They were there for years already in the UK. It is a brilliant solution for traffic solving: a self organising solution… but how did they get from a normal cross to a roundabout? The roundabout saves the world from stupid traffic jams moreover saving the costs of police or traffic lights!

Another example (also for crossing and also turning…) is the revolving door. To avoid cool winds coming in when entering in a room, a very simple but effective solution. No more open doors, the door is always closed. No noise from slamming doors when closing, a silently opening and closing door!

Both are surprising innovations! I always wonder how people got to these innovations. They solved lots of problems, they increased quality of live and are so simple, effective and easy to use.

All based and triggered by a specific need, and on the ability to abstract and come to new and simple solutions.

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2)     Innovate the “what” and the “how”

Why would a multimillion dollar company successful at introducing new products and variations, with a large R&D and marketing department, decide to outsource innovation? Would you believe that the first time R&D and marketing ever sat at the same table was in the presence of this outsourced innovation team? Would you also believe that they hired us for our innovation methodology, but what they are really interested is in the innovation led results?

What if I told you that our toy brand-owner client is working with our telecom brand-owner company on a new innovation which, to put it simply, uses the intrinsic know-how of both companies but focused differently? Could any of these companies have made it without us in the middle? What about joining a toy company with another client from the financial services industry, thereby combining a product based company with one that is service based? Could they have ended up with a successful business model without us in the middle?

NODE is a product and service strategic company based in Barcelona that serves the largest local corporations in addition to international brands that trust Spain to conceive new and innovative products. Our main service entrance is though Applied Innovation, meaning real life / real time application of innovation throughout the business. When people talk about outsourcing innovation, it is important to remind ourselves that outsourcing innovation is always about outsourcing parts of the innovation process. It can be about mediation, process clarification, opportunity identification, insight, broader focus, etc.

The difference between innovation and applied innovation is clear for NODE; the second has to be grounded in a clear understanding of actors, needs, context and solution. These are the four constituents of our methodology, and they require a team effort of multi-talented and professional people that share their love for products that can improve people’s lives.

Many of our clients work heavily with Asia, and require us to work with their partners. We ask ourselves this question: if it is so easy for a company that buys 80% of their production from Asia to buy a full fledge design, why would they pay for the professional services of a company in the middle, such as NODE?

The idea that the rich West can maintain the highest level of product creation and that the job of turning concepts into actual products or services can be shipped out (BW 210305 Outsourcing Innovation) may be a nice concept, but are companies really able to identify and define new concepts, and then specify them to a level where the end result is an accurate representation of the initial idea? Who is presently deciding how to break up a product platform into sensible bits, defining what is too valuable to be done outside, what can be done in Asia, and how and at what price versus risk? Who is actually drawing that line and why?

The reality is we may be switching from one ineffective practice to another, from a narrowly focused and belly-button type of innovation practiced by brand-name companies to another type of narrow focus by manufacturers. The history of these companies buying design and innovation-led outfits to boost their capacity is as negative as the one of brand owners investing in large in-house design and innovation departments. Success is very much about the scope you have of the market and the dependency on capital investment necessary to make things work. This means, the higher the investment in a specific business apart from services, the narrower the scope.

Anyone dealing with product concepts knows how hard it is to pick up a visual and very descriptive, almost tactile, definition of a product and churn out a design that reflects that vision and exceeds expectations. We believe it is very much about how you get to the concept in the first place, who is involved, how, and how fast you start to visualize and discuss the design.

If I had to summarize NODE’s best qualities, I would say these:
1 – Ability to identify good, sensible, applicable innovation (the type you always had it in front of you but never saw it, or the type you question yourself “why didn’t I think of that”);
2 – Ability to provide fast transition from innovation concept to product concept to working prototype to product in the market;
3 – Ability to create product platforms – from the 100€ to the 10.000€ fully hyped up solution - on one optimized platform;
4 – Ability to empower you and your team – we mediate, work with clients and make it look as if it was all their work.

But then, in the end, isn’t this what you would expect from a professional services company?

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3)     More than a business model

¿Hasta dónde puede llegar la innovación? Hasta hace poco parecía que la innovación se limitaba al producto o servicio de una empresa, aún así, alguna de las empresas que han llegado más lejos han demostrado que hay muchas maneras de innovar más allá de lo que la empresa produce.

Uno de los primeros ejemplos que revolucionó su sector fue Inditex. La compañía innovó en concepto de negocio, y con ello modificó su proceso de fabricación revolucionando el mercado. Consiguió sacar nuevos productos cada quince días, adaptando su oferta a la demanda de manera prácticamente automática.

Pero no es este el caso que más me sorprende. Camper (www.camper.com), una empresa, una marca, mundialmente conocida por sus zapatos originales y exclusivos, ha sido capaz de adaptar su filosofía más allá de un sector, un mercado o un producto. Es una empresa que se ha construido a través de un espíritu abierto, sin limitaciones. Ha innovado a través de su filosofía, abstrayendo la marca más allá del producto. ¿Qué es Camper? Camper ya no son zapatos, Camper es libertad, confort, creatividad, simplicidad. Esto ha llevado a la compañía a poder aplicar su concepto a nuevos sectores, que nada tienen que ver con los zapatos. Camper no alquila habitaciones con sus hoteles, sino relax, tranquilidad y comodidad. En sus restaurantes no vende solo comida, sino simplicidad, naturalidad y calidad. Todo ello acompañado por un diseño que viene fomentado por la creatividad y la capacidad de ver más allá.

¿Serán capaces las grandes empresas multinacionales de romper su concepto de negocio e innovar más allá?

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4)     Trendinformation

Una gran fuente de inspiración para la innovación son las webs que recogen tendencias. Un buen ejemplo es mi web mensual favorita http://www.trendwatching.com/trends/ourtrendsindex.html
Tienen un newletter gratuito que recoge nuevas ideas de producto y negocio, y es además una fuente de nuevas palabras que defininen nuevos conceptos (por ejemplo Massclusivity, o exclusividad para las masas, que en otros lugares se ha acuñado con Masstige, o prestigio par las masas).

Leí una vez también, que alguien había montado un negocio que se dedicaba a recoger tendencias en el mercado y a vender informes. Su fuente de información era una red de contactos bien seleccionados, que consultaba con regularidad y le comentaba qué quería la gente, cómo se comportaba,…:
El portero y barman de discoteca que cada fin de semana está en contacto con los jóvenes
La señora de la pescadería en el mercado que ve pasar y habla con mucha gente
El taxista que hace a menudo el trayecto aeropuerto-centro ciudad
….

Nuestro último recurso es nuesto sentido común, las experiencias diarias, lo que vemos, lo que nos dice la gente, lo que se lee y oye,… El valor que tienen estas empresas es que consiguen poner un nombre y definir cosas que seguramente nos hemos dado cuenta, y nos confirman que es un dato

Pero la innovación real es la de quien marca la tendencia, los trendsetters. Si alguien conoce una web que hable de trendcreation, bienvenida sea

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