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22 unexpected things about digital innovation that have changed your business

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My musings on Digital Innovation in perspective.

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22 unexpected things about digital innovation that have changed your business

  1. 1. 22 unexpected things that Digital Innovation has changed in your business Origin of ideas . The new unicorns. Competition . The other Valleys . Transformation By MARTA DOMINGUEZ
  2. 2. Origin of ideas
  3. 3. 1 It´s the innovation, Stupid! To innovate is to exploit an idea commercially. Any idea that is new. Ideas in isolation are never to be called innovation but creativity. New means advance for consumers. Some examples: Technical advances are Internet, broadband and smartphones. Non-technical advances are non- traditional distribution and low cost. models. Image courtesy of Jeyp
  4. 4. 2 True innovators True innovators act like giraffes: they emerge from the forest. True innovators can think without constraints from the market or their current customer base. Many companies mistakenly call what it´s just a good product innovation. Image courtesy of Pablo_marx
  5. 5. 3 Ideas The good and The bad Ideas can be selected 1) By hygienic attributes 2) Like an entrepreneur and 3) Like an intrapreneur. A good hygienic idea is one that solves a problem and is applicable, relevant and deliverable. A good entrepreneurial idea is original, uses technology and is profitable. A good intrapreneurial idea is one that has a big market, a sound margin and has been tested with clients. Image courtesy of Rob-qld
  6. 6. 4 One of the three To innovative your business must be one of the three: 1) Better, 2) Easier or 3) Cheaper. Better Easier Cheaper Image courtesy of The-i-thread.com
  7. 7. The new unicorns
  8. 8. 5 Disruptive Google glasses, 3D printers and big data are often thought of disruptive innovations. But disruptions can only be verified in rear view. If five years from now any of these great technologies 1) has changed the strategy gear of other companies and 2) has put upside down an entire industry, then they have proved disruptive. No losers, no disruption. Image courtesy of Digitalnc
  9. 9. 6 It´s the value, not the price Here´s the experiment. Some parents come everyday late to your school to pick up their kids. Tweak the experience: Tell them next time they are late they will pay a 10 $ fine per each 30 minutes of delay. At the end of the week I guarantee you´ll have a big piggy bank and a full class of kids waiting. The important lesson: consumers are eager to pay any price worth value. Image courtesy of Teegardin
  10. 10. 7 The simplest format of a business model A good business model must solve a problem, have customers, generate income, as well as be scalable. In short, a good business model is one that creates true value to a customer. There is no business model in bringing water where there is water. Image courtesy of Gapingvoid Art
  11. 11. 8 Pizza rule for market size Your market size is always much smaller than the total available market. I called it the “pizza rule”: never expect a big pizza but a small pizza. You must feed from your potential market not the total available market. Image courtesy of The-i-thread.com Pizza Rule Your potential market
  12. 12. Competition
  13. 13. 9 The pricing Problem Paying for what you want is ok. Paying for things you don´t want is not ok. Welcome to the context of abundance in Internet! We were 6 billion people in 2011. Then: 3 billion had a mobile phone and 1 billion had Internet. Now: We are over 7 billion and 2 billion have Internet. Joichi Ito (MIT and Creative Commons) says “in the future consumers will be like sponsors”. Till then a problem remains unsolved: how to price consumers? Image courtesy of Nasa
  14. 14. 10 Fear is good for innovation You choose the ideas you want to work on. Innovation is a game of resisting fear. But fear is also good. Fear helps you with “your (business) first times”: starting a project, dealing with the irrational... Innovation is a path of uneasy moments. You need to pass those steps to (hopefully) get to transformation. Image courtesy of Gapingvoid Art
  15. 15. 11 Competition DO exist Most of entrepreneurs and innovators rather don´t look at competitors. Finding there is a competing innovative idea is bad news. But knowing it is good news. Innovators can learn about 1) deceases similar failed businesses died from, 2) what is a good growth rate in their area, 3) who is competing with you outside your business Image courtesy of Gezric
  16. 16. 12 A tech trend Victim? Most people feel they are always late for big tech trends. Here are three possible strategies. “The academic model”: go and make lists of influential people to follow. This includes investors, startups, tech news journalists, Stanford and MIT professors. “Against the tide model”: go and look for unsolved problems. Mark Cuban says: “Look where others are not looking”. Finally, “Being late but nailing it”: Best is better than first. Think of Facebook, Google, Apple, Ford, Boing, Quora and Tumblr.
  17. 17. Valley of Death
  18. 18. 13 Valley of Death You start your idea. Then between the 19 and 22 months the curve of interest stagnates. Fresh ideas are like TV show scripts: episode one thrills and early adopters get interested, but then you have to probe the idea is worth to the mainstream. Image courtesy of The-i-thread.com
  19. 19. 14 Your product is fiction Lisa Gansky says “any new idea you start is a fiction product”. To create an original thing means doing a puzzle. There are technology pieces. And there are non- technology pieces: Do customers want it? Does a market exist for it? Pricing? Did early adopters tell you any clue for adding new customers? Who I should partner with? Many people use a shortcut “The bestseller strategy”: they launch many short and low cost projects hoping that one of them will make it. Image courtesy of Greenplasticamy
  20. 20. 15 At your service Here is a new customer service paradigm. Prior to social networks clients were at the service of a company. With social networks it is the company that is at the service of the customers. Customers now click the search box. If they like the opinions they find… they will trust you.
  21. 21. 16 On pivoting Making decisions is not for dumb people. To pivot to a new model is not a piece of cake. It takes loads of courage. Sarah Lacy (Pando) says: “I criticize euphemisms like to pivot. Few startup leaders are able to recognize they made an error”. Image courtesy of Nicolas Raymond
  22. 22. Transformation
  23. 23. 17 On cockroaches Startups should be like cockroaches. A famous quote by Paul Graham (YCombinator) says: “Apparently the most likely animals to be left alive after a nuclear war are cockroaches, because they're so hard to kill. That's why you want to be as a startup, initially. Instead of a beautiful but fragile flower that needs to have its stem in a plastic tube to support itself, better to be small, ugly, and indestructible.” Image courtesy of Tom Spinker
  24. 24. 18 The F Generation Hackers are the new heroes to a generation of millenials that enter the workforce. Gary Hamel called them “the F generation”. Instead of hierarchies, fixed tasks and closed groups the new employees will demand open companies. Users (and not the bosses) will have the power.
  25. 25. 19 Students for a lifetime Sebastian Thrun saw it first: “the very pattern of employment is changing. A few generations ago, a single job often lasted for a lifetime. In 2012, the average job tenure was 4.6 years. Tech start-ups like Airbnb, Lyft, and Uber are using freelance employment models to disrupt hospitality, transportation, and many other industries. As a result, workers are under increasing pressure to keep their skills current. This has enormous implications for the educational needs of the global population.” Image courtesy of jdlasica
  26. 26. 20 Crucial Imbalances Kodak had on its peak over 140,000 employees. Instagram had 13 employees when it was sold to Facebook. Technology and Internet has been good for our society and our world. But new voices from Internet sceptics are arising. Is technology killing our middle class as Jaron Lanier defends?
  27. 27. 21 Innovating on the move Ideation is an important but insufficient part in innovation. “To act in innovation you have to ideate new things”, we were told. But innovation means solving problems. Innovation is more than that unique time that you started your business. Innovation is not sole harvest. Image courtesy of El Roto
  28. 28. 22 Design Thinking is the new black Design thinking is like Lego bricks: blocks to work on original concepts. Map, Explore, Build and Test.
  29. 29. Marta Domínguez i-Thread consulting . the-i-thread.com

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