The document discusses the concept of "Shanzhai" innovation in China. Some key points: - Shanzhai refers to Chinese copycat companies that produce inexpensive imitation products. This is traditionally seen as a step in an organization's evolution through copying, iteration, and improvement. - Shanzhai products help project status and social mobility for many Chinese consumers. They also introduce consumers to established brands. - Shanzhai companies may be more customer-centric and responsive than legal manufacturers due to their ability to quickly produce products without regulatory barriers. - Shanzhai redefines the relationship between inventors and producers, where copies can improve upon original ideas through incremental innovation and collaboration with customers.

1. Shanzhai Innovation
by Rainer Wessler, Executive Creative Director

2. frog drives innovation for the connected world

3. frog drives innovation for the connected world

4. frog drives innovation for the connected world

5. Innovation

6. Innovation
Intent Rendition
Ideation Execution
Creativity Craftsmanship

7. The Shanzhai phenomenon.

8. Shanzhai marks a temporary,
not the ultimate state of an
organization’s evolution.

9. Hiroshige van Gogh
(original) (copy)

10. Traditionally, copy and repetition are key ingredients to Chinese
education and training programs and do not demonstrate a lack of ideas
or originality, but a statement of respect. Frequent iteration and
incremental improvement are seen as a necessity to achieve perfection.

11. Only after acquiring the basic skills of a trade, creativity is encouraged as a
direction for further growth. In a country that values respect and continuity
between generations as much as China does, can we look at Shanzai as a
step, but not the end state in an organization’s evolution?

13. An ecosystem that not only delivers truthful copies of products
but also creates novel feature and brand permutations.

14. Shanzhai products help to
project status and upward
social mobility.

15. Miàn Zi
面子

16. In a country socio-economically as divers as China, putting your best face
forward drives many behaviors and aspirations. Shanzhai products can play
an important role by providing the insignia to project achievement or upward
social mobility.

17. In a country socio-economically as divers as China, putting your best face
forward drives many behaviors and aspirations. Shanzhai products can play
an important role by providing the insignia to project achievement or upward
social mobility.

18. Shanzhai products can actually play in favor of the established brands. I
learned that sometimes customers might only become aware of ‘the real
thing’ through the purchase of an equivalent Shanzhai product - especially in
low tier cities where western brands often lack branch presence.

19. Shanzhai are among the truly
customer centric businesses
in China.

20. This is not a basket of eggs.
It’s the tip of an iceberg.

21. For most people shanzhai - or imitation goods, have a derogative association.
However, one of the motivations for going 'Shanzhai' is to avoid the difficult
regulations the Chinese government has established to become an official
manufacturer.

22. The Shanzhai ecosystem that can crank out products in one-tenth
of the time, unencumbered by moral, legal or institutional barriers,
can be seen as more customer-centered and responsive than their legally
established competitors in China - an opportunity, rather than a threat?

23. Given their fast product-to-market cycles and their non-commitment to
regulations and business alliances Shanzai manufacturers can be seen
as more customer-centered and responsive than their legally established
competitors in China.

24. Shanzhai redefines the
relationship between the
inventor and the maker.

25. ... an ancient form of Google Wave, where ideas invite conversations - and
sometimes imitation ...

26. In post-renaissance western cultures the inventor often enjoys higher
appreciation than the craftspeople who make it happen.

27. Can a copy be more truthful to the actual idea than it’s initial rendition?

28. Yes it can :-)

29. Only in arts and pop culture we see symbiotic relationships between the
initiator of an idea and the ones who are the excelling in bringing it to life.
(think Beethoven & Glenn Gould)

30. Only in arts and pop culture we see symbiotic relationships between the
initiator of an idea and the ones who are the excelling in bringing it to life.
(think electronic music / sample and remix culture)

31. Shanzhai innovation in the
‘connected world’ ...

32. One open briefing, three independent teams = one idea?

33. Do ideas converge in the connected world?

34. Has innovation turned into a community effort, a public sport?

35. A community of designers volunteering their ideas to brands they admire.

36. What can we learn from
Shanzhai companies?

37. Have the head
and the hand
work together.

38. Accept what you
don’t know. Jump
in, get dirty.

39. Know what you are
selling. Love your
product!

40. Increase TTM
through incremental
innovation?

41. Understand your
customers and
their needs.

42. Co-create
with your
customers.

43. Be easy to deal
with. Be a good
partner.

44. Stop obsessing
with protecting
your ideas?

45. Hire good people.
People who
network.

46. Hire good people.
People who
network.
People who love
what they make.