Innovation: Six Varieties (and a Brain) Client presentation Silicon Valley visit February 16, 2009 Jerry Michalski “ Point...
Who’s speaking <ul><li>1987-1998 as a technology industry analyst </li></ul><ul><ul><li>Avocation    vocation </li></ul><...
Agenda <ul><li>Corporate innovation </li></ul><ul><li>Defensive innovation </li></ul><ul><li>Silicon Valley innovation  </...
Almost Famous
Almost Famous
Almost Famous
Almost Famous
Almost Famous
Almost Famous
Almost Famous
Almost Famous
Almost Famous
Almost Famous
Almost Famous
<ul><li>1 </li></ul>Corporate innovation
Credit derivatives?
Mgmt obsessed with innovation <ul><li>Innovation labs, markets, factories </li></ul>
Innovation models <ul><li>Lead Users (Eric von Hippel, MIT) </li></ul><ul><li>Human-centered design (IDEO, others) </li></...
An important work
A dilemma Christensen missed <ul><li>Christensen (Innovator’s Dilemma) </li></ul><ul><ul><li>Sustaining innovations </li><...
A dilemma Christensen missed <ul><li>Christensen (Innovator’s Dilemma) </li></ul><ul><ul><li>Sustaining innovations </li><...
Defensive innovation 2
Recent defensive innovations <ul><li>Prolong ownership of  © (CTEA) </li></ul><ul><li>Cripple threatening technology  </li...
Unintended consequences <ul><li>Heresy    Quaker persecution    Industrial Revolution </li></ul><ul><li>Space/defense  ...
Basic assumptions <ul><li>Capitalism </li></ul><ul><li>Intellectual Property </li></ul><ul><li>Competition </li></ul><ul><...
Silicon Valley innovation 3
One view
The cliché landmarks
Again, many books
Silicon Valley innovation <ul><li>Often copied, never emulated </li></ul><ul><li>Superconductivity of connections </li></u...
Distilled essence <ul><li>Understanding Silicon Valley : The Anatomy of an Entrepreneurial Region </li></ul><ul><ul><li>Ec...
Tour SV through my Brain <ul><li>Concept management app ( here ) </li></ul><ul><li>Eleven years’ use </li></ul><ul><li>102...
Lessons from My Brain <ul><li>Always at hand (20 secs in, 5 out) </li></ul><ul><li>Local structure </li></ul><ul><li>Appro...
2.0 innovation 4
Mashup: HousingMaps.com
2.0 innovation <ul><li>Simple, appealing applications </li></ul><ul><li>APIs  + open data feeds = mashups </li></ul><ul><l...
Social media’s many faces <ul><li>Microblogs ( Twitter ) </li></ul><ul><li>Blogs ( BoingBoing ) </li></ul><ul><li>Wikis ( ...
Being in the Flow <ul><li>BoingBoing ,  Slashdot ,  Digg </li></ul><ul><li>A weblog for every trade and interest </li></ul...
Twitter
Companies using Twitter <ul><li>Comcastcares </li></ul><ul><li>JetBlue </li></ul><ul><li>Zappo’s (many) </li></ul><ul><li>...
Insignificant acts <ul><li>“ Friend” (bff) </li></ul><ul><li>Throw a sheep </li></ul><ul><li>Poke </li></ul><ul><li>Update...
Wiring the Global Brain
Social dynamics
Outside innovation 5
Outside innovation <ul><li>Crowdsourcing </li></ul><ul><ul><li>CrowdSound ,  Kluster </li></ul></ul><ul><li>Eli Lilly  Inn...
Mobs or collective intelligence? <ul><li>Mackay (1841):  … the Madness of Crowds </li></ul><ul><li>Hardin (1968):    The T...
Open innovation 6
 
 
VATSIM
Open innovation issues <ul><li>It’s really uncomfortable (generational issue) </li></ul><ul><li>Governance, control </li><...
New faces of innovation
Recommended reading <ul><li>Here Comes Everybody , by Clay Shirky </li></ul><ul><li>How Breakthroughs Happen , by A. Harga...
Responding to the downturn <ul><li>Exploit cost effectiveness </li></ul><ul><ul><li>Traditional marketing vs word-of-mouth...
<ul><li>Jerry Michalski  </li></ul><ul><li>[email_address] www.sociate.com +1 (415) 465-0256 </li></ul>Questions?
<ul><li>Except where noted, the contents of this presentation are licensed to the public under the Creative Commons  Attri...
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Michalski - 6 Kinds Of Innovation

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There's plenty of talk about corporate innovation, but little about its dark side. And even less about other kinds of innovation flourishing today. LMK what you think.

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Michalski - 6 Kinds Of Innovation

  1. Innovation: Six Varieties (and a Brain) Client presentation Silicon Valley visit February 16, 2009 Jerry Michalski “ Point of view is worth 80 IQ points.” – Alan Kay
  2. Who’s speaking <ul><li>1987-1998 as a technology industry analyst </li></ul><ul><ul><li>Avocation  vocation </li></ul></ul><ul><ul><li>Identifying trends </li></ul></ul><ul><ul><li>Bridging business, society and tech </li></ul></ul><ul><ul><li>Famous boss (Esther Dyson) </li></ul></ul><ul><li>1998-now: independent consultant </li></ul><ul><ul><li>“ Guide to the relationship economy” </li></ul></ul><ul><li>Raised in Peru and Argentina </li></ul><ul><li>Champion for ordinary people </li></ul>
  3. Agenda <ul><li>Corporate innovation </li></ul><ul><li>Defensive innovation </li></ul><ul><li>Silicon Valley innovation </li></ul><ul><li>2.0 innovation </li></ul><ul><li>Outside innovation </li></ul><ul><li>Open innovation </li></ul>
  4. Almost Famous
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  7. Almost Famous
  8. Almost Famous
  9. Almost Famous
  10. Almost Famous
  11. Almost Famous
  12. Almost Famous
  13. Almost Famous
  14. Almost Famous
  15. <ul><li>1 </li></ul>Corporate innovation
  16. Credit derivatives?
  17. Mgmt obsessed with innovation <ul><li>Innovation labs, markets, factories </li></ul>
  18. Innovation models <ul><li>Lead Users (Eric von Hippel, MIT) </li></ul><ul><li>Human-centered design (IDEO, others) </li></ul><ul><ul><li>Observation </li></ul></ul><ul><li>Others </li></ul><ul><li>What can you see? </li></ul><ul><ul><li>The Battle for the Atlantic </li></ul></ul>
  19. An important work
  20. A dilemma Christensen missed <ul><li>Christensen (Innovator’s Dilemma) </li></ul><ul><ul><li>Sustaining innovations </li></ul></ul><ul><ul><li>Disruptive innovations </li></ul></ul>
  21. A dilemma Christensen missed <ul><li>Christensen (Innovator’s Dilemma) </li></ul><ul><ul><li>Sustaining innovations </li></ul></ul><ul><ul><ul><li>Enhancing </li></ul></ul></ul><ul><ul><ul><li>Defensive </li></ul></ul></ul><ul><ul><li>Disruptive innovations </li></ul></ul>
  22. Defensive innovation 2
  23. Recent defensive innovations <ul><li>Prolong ownership of © (CTEA) </li></ul><ul><li>Cripple threatening technology </li></ul><ul><ul><li>CPRM, EMMS, HDCP, TCPA, DTCP </li></ul></ul><ul><ul><li>= “Trusted” Computing Architecture </li></ul></ul><ul><li>Own all ideas (gene & process patents) </li></ul><ul><li>Bend nature (Monsanto Terminator gene) </li></ul><ul><li>Criminalize circumvention (DMCA) </li></ul><ul><li>Limit recourse (WTO, WIPO) </li></ul>
  24. Unintended consequences <ul><li>Heresy  Quaker persecution  Industrial Revolution </li></ul><ul><li>Space/defense  US electronics  Sony </li></ul><ul><li>Monopoly  AT&T Consent Decree  Linux </li></ul>
  25. Basic assumptions <ul><li>Capitalism </li></ul><ul><li>Intellectual Property </li></ul><ul><li>Competition </li></ul><ul><li>Assets </li></ul><ul><li>Control </li></ul><ul><li>Trust </li></ul><ul><li>Scarcity </li></ul>Self-organization Abundance Openness Relationships
  26. Silicon Valley innovation 3
  27. One view
  28. The cliché landmarks
  29. Again, many books
  30. Silicon Valley innovation <ul><li>Often copied, never emulated </li></ul><ul><li>Superconductivity of connections </li></ul><ul><li>Venture community (Sand Hill Road) </li></ul><ul><li>Funding – research – entrepreneurship cycle </li></ul><ul><li>Fred Terman </li></ul><ul><li>Stanford, Fairchild, Varian, HP, Intel, SRI, PARC, Oracle, Apple, Google </li></ul><ul><li>Buck’s Woodside, Il Fornaio, Fry’s, Hobee’s </li></ul><ul><li>Unintended consequences (defense, space) </li></ul>
  31. Distilled essence <ul><li>Understanding Silicon Valley : The Anatomy of an Entrepreneurial Region </li></ul><ul><ul><li>Ecosystem: law firms, VCs, schools, businesses </li></ul></ul><ul><ul><li>Performance, not civic virtue or status </li></ul></ul><ul><ul><li>Specialty: new firm formation </li></ul></ul><ul><li>Making Silicon Valley : Innovation and the Growth of High Tech, 1930-1970 </li></ul><ul><ul><li>Bands of engineers, military patronage </li></ul></ul><ul><ul><li>Innovations in mfg, engr’g and entrepreneurship </li></ul></ul>
  32. Tour SV through my Brain <ul><li>Concept management app ( here ) </li></ul><ul><li>Eleven years’ use </li></ul><ul><li>102,000 thoughts (nodes) </li></ul>
  33. Lessons from My Brain <ul><li>Always at hand (20 secs in, 5 out) </li></ul><ul><li>Local structure </li></ul><ul><li>Appropriation </li></ul><ul><li>My own space (no negotiation) </li></ul><ul><li>Refreshes the wet brain </li></ul><ul><li>Very satisfying </li></ul>
  34. 2.0 innovation 4
  35. Mashup: HousingMaps.com
  36. 2.0 innovation <ul><li>Simple, appealing applications </li></ul><ul><li>APIs + open data feeds = mashups </li></ul><ul><li>Super-low cost of entry </li></ul><ul><ul><li>Hosting, bandwidth (cloud computing) </li></ul></ul><ul><ul><li>Organic marketing </li></ul></ul><ul><ul><li>“ Natural costs” </li></ul></ul><ul><li>“ Late binding” </li></ul><ul><li>People powered: see outside innovation </li></ul>
  37. Social media’s many faces <ul><li>Microblogs ( Twitter ) </li></ul><ul><li>Blogs ( BoingBoing ) </li></ul><ul><li>Wikis ( TaxAlmanac ) </li></ul><ul><li>Media sharing ( Flickr , YouTube ) </li></ul><ul><li>Social search ( Digg ) </li></ul><ul><li>Social networks (Facebook/ feeds ) </li></ul><ul><li>Event calendars </li></ul><ul><li>Lifestreaming ( FriendFeed ) </li></ul><ul><li>MMOGs (WoW, SL ) </li></ul><ul><li>Mashups ( HousingMaps.com ) </li></ul><ul><li>Ratings (everywhere) </li></ul><ul><li>Metadata </li></ul><ul><ul><li>Tagclouds </li></ul></ul><ul><ul><li>Visualizations </li></ul></ul><ul><ul><li>Analytics </li></ul></ul>
  38. Being in the Flow <ul><li>BoingBoing , Slashdot , Digg </li></ul><ul><li>A weblog for every trade and interest </li></ul><ul><ul><li>GTD Times </li></ul></ul><ul><ul><li>Kashklash </li></ul></ul><ul><ul><li>The Oil Drum </li></ul></ul><ul><ul><li>Ushahidi </li></ul></ul><ul><li>The tweetstream… </li></ul>
  39. Twitter
  40. Companies using Twitter <ul><li>Comcastcares </li></ul><ul><li>JetBlue </li></ul><ul><li>Zappo’s (many) </li></ul><ul><li>Dell </li></ul><ul><li>Many more now (great list online) </li></ul>
  41. Insignificant acts <ul><li>“ Friend” (bff) </li></ul><ul><li>Throw a sheep </li></ul><ul><li>Poke </li></ul><ul><li>Update status </li></ul><ul><li>Forward an email </li></ul><ul><li>Blog post </li></ul><ul><li>Tweet </li></ul><ul><li>Invite </li></ul>
  42. Wiring the Global Brain
  43. Social dynamics
  44. Outside innovation 5
  45. Outside innovation <ul><li>Crowdsourcing </li></ul><ul><ul><li>CrowdSound , Kluster </li></ul></ul><ul><li>Eli Lilly InnoCentive </li></ul><ul><li>Lafley’s challenge to P&G </li></ul><ul><li>Predictive markets ( IEM ) </li></ul><ul><li>UGM (UCC, etc) </li></ul><ul><li>YouTube (watch this ) </li></ul>
  46. Mobs or collective intelligence? <ul><li>Mackay (1841): … the Madness of Crowds </li></ul><ul><li>Hardin (1968): The Tragedy of the Commons </li></ul><ul><li>Shirky: Here Comes Everybody </li></ul><ul><li>Tapscott: Wikinomics </li></ul><ul><li>Surowiecki: The Wisdom of Crowds </li></ul><ul><li>Rheingold: Smart Mobs </li></ul><ul><li>Benkler: Sharing Nicely </li></ul>
  47. Open innovation 6
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  50. VATSIM
  51. Open innovation issues <ul><li>It’s really uncomfortable (generational issue) </li></ul><ul><li>Governance, control </li></ul><ul><li>What is your asset? </li></ul><ul><li>Shared assets: the Commons </li></ul><ul><ul><li>Tending the commons </li></ul></ul><ul><li>Openness (tools, content, process) </li></ul><ul><li>Vulnerability </li></ul>
  52. New faces of innovation
  53. Recommended reading <ul><li>Here Comes Everybody , by Clay Shirky </li></ul><ul><li>How Breakthroughs Happen , by A. Hargadon </li></ul><ul><li>Groundswell , by Charlene Li and J. Bernoff </li></ul>
  54. Responding to the downturn <ul><li>Exploit cost effectiveness </li></ul><ul><ul><li>Traditional marketing vs word-of-mouth </li></ul></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><li>Product design </li></ul></ul><ul><li>Shift ahead of the market </li></ul><ul><ul><li>New forms of trust </li></ul></ul><ul><ul><li>New attitudes toward property (& the commons) </li></ul></ul><ul><ul><li>New organizational models </li></ul></ul><ul><li>Let go </li></ul>
  55. <ul><li>Jerry Michalski </li></ul><ul><li>[email_address] www.sociate.com +1 (415) 465-0256 </li></ul>Questions?
  56. <ul><li>Except where noted, the contents of this presentation are licensed to the public under the Creative Commons Attribution-Non-Commercial-Share Alike 3.0 United States license. The terms are available here . </li></ul>Some rights reserved

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