Innovation kaleidoscope: The 4 primary colors of innovation

Many people think that innovation is a single thing – and it’s centered on the product or service – but I believe innovation can come in at least four areas and is driven at the organizational level, not just the product or service level.

In the graph, I have outlined four areas of innovation that create and drive Customer value:

1. Technology Innovation

2. Revenue Innovation

3. Channel [or sales] Innovation

4. Delivery Innovation

But before we start talking about innovation, let’s quickly look at Customer Value so let's keep it simple with the following definition...

Innovation driven Customer Value is anything that improves the product or service for the customer while creating an overall lower price.

I can already hear some of you "But what if I make the product better and it's costs more?" -- that may be the case, the innovation may make something "better" and raise the price - but price is relative to the improvement or innovation - and is completely relative to the "perceived" value by the customer [adding anti-lock breaks to a car may increase the price, but it should also increase the perceived value of the vehicle even more].

So, with that in mind, let's look the four areas...

Technology Innovation

Technology Innovation is usually what we think about when the term "Innovation" is used. It is the aforementioned anti-lock brakes [that are now standard and no longer considered innovative]; it Windows 7 or Snow Leopard operating system; it is the reusable space craft [also called the space shuttle]. Technology Innovation is that leap forward, the move from one place to another, that makes our lives more interesting.

Every company and organization can utilize technology to innovate their products and services - even things as boring as water facets can be enhanced with technology - new metals, new filters, new colors, new shapes, etc. So anytime you see either a brand new product or a "new and improved" label - it usually has to do with Technology Innovation.

Revenue Innovation

Most people don't think "how you get paid" is very innovative, but ideas such as Credit, Lay-away, try-before-you-buy, are all innovative ways to get more revenue. How about Google - they have an innovative way to fund their company - it's through advertising - they provide most of their services free and all a user has to do is allow advertising to be "presented" to them while do their own thing. Or how about Open Source software - in many cases, it's free, but the companies such as Red Hat and SugarCRM give away their products but charge for support and training. In the very early days of outsourcing, EDS shifted the revenue away from "time sharing" of a large mainframe to "paying per transaction" complete [sounds a little like cloud computing doesn't it - of course it's not, because cloud is new concept created by Amazon!!].

Channel Innovation

How you sell is always changing - some companies innovate by moving everything to "self service" allowing the customer to support themselves [and many people do a better and quicker job of it] while others may move to a very "high touch" or personal experience. How you sell and how you support your customers becomes an integral part of who you are as an organization - and in many cases becomes synonymous with your "brand". But remember - nothing is written in stone and being innovative with your products and services can breath new life into them.

Delivery Innovation

Within the context of services, how you deliver can determine "who" you deliver to. In fact, companies have sprung up around this area alone - FedEx being the most popular, but there are others. But logistics and delivery is only one aspect of delivery innovation. Think about all the applications on the iPhone that did not exist two years ago. Many banks deliver your account balance and other services to you where ever you are in the world - that's delivery innovation. How about Enterprise Rent-a-Car "They'll pick you up" - that's both a promise and delivery innovation.

So what does all this mean - that Innovation does not have to be wiz-bang stuff. Innovation can be doing some small things differently. Or it can be about who you are in the world. Innovations are happening around us all the time - stop and starting looking for both the small and big things - and you'll notice that many companies are listening to you and making changes for the better.

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iPhone now 40% of Apple's revenue

Based upon Apple's published financials, the iPhone now represents approximately 40% of company's revenue. But what is just as impressive, is how Apple has fared through the recession.


Think about this, the iPhone is only about 3 years old as a product and has a limited distribution channel in the US [even though it can be jail broken and untethered from AT&T - it operates with limited functionality].


When Apple launched the iPhone there were many debates as to how well they would do and if it would be a success. Apple was looking at capturing 1% of the smart phone market - and they believed if they could, then they would be a success. Now, they are 300 pound gorilla in the market [along with HTC - another relative new comer] and have basically pushed Nokia and Motorola out of the way during their climb.


It will be interesting to see what happens to their product line over the next 12 to 18 months - with the introduction of the iPad, the functionality of the iPod Touch, along with new laptops - and how will the product mix change during that time.

Source:
http://justanotheriphoneblog.com/wordpress/iphone-news/crazy-iphone-numbers-now-accounts-for-40-of-apples-revenue

Also visit Walt Casey's blog - http://iphoneperspectives.blogspot.com/

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Springwise for: 21 April 2010 | 10 more biz ideas

Personally, I like the p2p car sharing idea - of course I wish my neighbors would do the lawn equipment sharing thing also, but I guess if we did that, what would we all do with Saturday mornings? Enjoy!

Hi Arnie,

Our latest issue is now online. Here's a quick run-down of the new products and services
that caught our attention this week:

For twins, outfits that don't quite match
Fashion & beauty

Designed to respect twin attachment and at the same time cultivate
individuality, TOT-a-LOT's garment pairs for twins complement
each other in aspects such as patterns, prints, colours or concepts.

P2P car-sharing comes to Australia
Automotive / Transportation

DriveMyCar is an online rental marketplace that allows car owners
to rent out their cars to other private individuals for a weekend,
a week, a month or even a year.

Branded kits for DIY probiotic yoghurt
Food & beverage

Progurt offers a way for consumers to make their own probiotic
yoghurt using the company's yoghurt maker, refrigeration tubs,
electrolyte complexes, prebiotic syrups and probiotic sachets.

iPad app delivers real-time trend forecasts
Media & publishing / Fashion & beauty

Stylesignal provides its customers with fashion forecasts, trend
information and news coverage. The company is now hailing its
new iPad app as a trend book that never goes out of date.

Designer takes preorders to crowdfund new lamp
Style & design / Retail

Guaranteed demand removes risk from launching a new product.
Dutch designer Daniel Schipper's latest, limited edition lamp will
go into production when 100 orders have been received.

Platform facilitates rankings of public speakers
Marketing & advertising

SpeakerRate is a community site for event organisers, attendees
and speakers that enables ratings and feedback about speakers
and speeches and helps users plan for future events.

Mobile app helps the visually impaired to 'see'
Life hacks

Visually impaired users point their LookTel-enabled phone's camera
at something, and the app deploys object and text recognition
technology to identify the item and pronounce its name to the user.

Waste to accessories, with a charitable twist
Fashion & beauty / Non-profit, social cause

Elvis & Kresse crafts high-fashion bags, belts and other accessories
from used fire hose and industrial waste materials. The company
makes donations to causes related to the source materials.

A tryvertising store for Sao Paulo
Marketing & advertising / Retail

After paying a yearly fee, members of Clube Amostra Gratis get
to take home and try an assortment of new products before
they become available on the shelves.

App lets users attach digital content to any barcode
Media & publishing / Marketing & advertising

With the Stickybits mobile app, users scan any barcode, then attach
music, text, photos or video content. When the same barcode
is scanned again by other users, they'll see that content.

High-end clothing brand only sells on tour dates
Retail / Fashion & beauty

Each season, clothing brand Clemens en August travels to an
assortment of fashion-minded cities to sell its current collections in
contemporary art galleries for only three days at a time.

A custom, branded iPhone app for every restaurant
Food & beverage / Marketing & advertising / Telecom & mobile

Blue Shoe provides restaurants with custom, branded iPhone
apps. Patrons can use them to place orders, and restaurateurs can
use them for tracking and to post discounts, promotions etc.

______________

Get ready for the 5th edition of The Next Web Conference!

The Next Web brings together the best audience, speakers
and companies to discuss the future of the web.

April 27 - 28 - 29 in Amsterdam — Find out more & register >>

______________

Our contact details

Springwise BV, a 53rd Floor BV company
Address: Laurierstraat 71, 1016 PJ, Amsterdam, The Netherlands
Web address: www.springwise.com
Email address: info@springwise.com

_______________________________________________________________________

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Simple Equations | Goals

To reach your goals, you have to know where you are starting from and you have to know where you want to go. "Life is a journey" - but if you don't know where you WANT to go, then where you end up is not up to you - it's up to fate.

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Cloud Computing: The Promised Land or The Big Lie?

First of all, 99% of the people in the world could care less about "Cloud Computing" - they want their email accounts to work, they want their checking account balance to show up on their iPhone, they want to listen to music, and could care less about the underlying technology that does that. And really, why should they?

But, I'm part of the 1% that does care. I care because the word "Cloud Computing" has created enough buzz that everyone wants one [but don't really know what they want] and believe it's going to allow them to save money, be more "agile", and be the savvy IT business guru they always wanted to be.

So my question - Is it the Promised Land or is it a Big Lie?

It's important to understand the answer. If you throw your hat in the wrong ring, it could take you years to recover - if you do [from a career standpoint]. And if you're the top IT guy at a company and start doing a "rip-n-replace" on anything "not cloud" - what happens if Cloud turns out to be another ASP technology?

So to clarify, the following is pretty standard for someone talking about Cloud...

Cloud computing promises to cut operational and capital costs and, more importantly, let IT departments focus on strategic projects instead of keeping the datacenter running.

WOW - what a mouthful! Let's make it bit easier - Cloud Computing promises so cut cost and let the IT folks do tech stuff that supports the business. In other words, IT people should be helping run the business, not making sure the computer is running. OK, I get that - and to have a bunch of people sitting around waiting for something to break is not very efficient. But I guess some IT organizations run that way.

So, if you have one person doing the work and 14 people standing around watching him - then does it really matter if you move to the cloud? You need to do something - cloud is a good as anything - then you can get rid of yourself and the 14 people and promote the one guy that actually works.

But, in the real world - definitions like the one above don't really help anyone. So, in an effort to help out, here's my stab [and not original at all] at two things - the definition and the benefit for Cloud Computing Services...

• Definition: Utility-like service, based upon an easy to understand billing and usage system. I get billed for what I use and nothing else.
• Benefit: I never consumer more than I need of the service, but also puts the responsibility on me to monitor my use [not the service provider].

Now, in my definition, there two basic assumptions about a Cloud Computing Service (1) that there will be enough of the service available [computing power, storage, bandwidth, whatever] so that the service is always available when I [the consumer] need it to be available AND (2) that the service provider gets paid for taking on the risk of provide "enough" which means if you leave the "lights on" but don't really need them on, you still pay.

What this does is create a situation where IT people have to think about how they use computing resources - rather than just buy a server and use it - they have to think through how to best use these resources, making informed decisions, and then implementing them.

[still writing and thinking - more later]

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2020: What will you be doing?

First of all, we have to assume we make it past 2012 and the coming apocalypse. So if we do, then where will you be in 10 years? What will you be doing? How will your profession change over the next decade?

We have a tendency to allow life to just “flow” – days become weeks, that become months, that turn into years – and well, our days just flow and all of a sudden, 10 years has passed. Think about April 2000 – what were you doing? How much has happened to you during those years? Are you different in any major way – or has been subtle changes [more like the frog that thought he was taking a bath in warm water until it started boiling]. Well, in April 2020 we’ll either be here or we won’t – and if we’re here, then you can beat some things will have advanced very quickly [while others not so much].

In a recent Forbes article – they looked various aspects of life and a potential view of what life will be like in 10 years. One of the areas is “work” and how it will change. The author, Martin Ford [author of “The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the Future”] states that the single greatest challenge facing us right now and through the next 10 year span is the creation of jobs. His basic assumption is that computerization and information technology are continuing to make “job automation” their number one goal – and what has happened to manufacturing will happen to “knowledge workers”.

“The six-figure knowledge worker who no inhabit oceans of corporate cubicles will be heavily threatened by software automation and specialized artificial intelligence applications that can perform many of the routine tasks and analyses that occupy their days” he predicts. “The economy of 2020 may well be characterized by substantial, broad-based and ever increasing structural unemployment, as well as by stagnant or plunging consumer spending and confidence.”

WOW – what a bleak future for us. But guess what, what he predicts will happen over the next 10 years, is happening right now. Many “knowledge” industries are being moved to the internet [or network enabled devices like the iPhone] – what has happened to the Travel industry? How about the legal industry – you can go out there to a web site and get all the documents you want to incorporate yourself. Or how about Tax Preparation [since tomorrow is April 15^th] how about that – or banking, or almost all our knowledge and service industries?

And don’t forget the work of High Tech – the industry I work in – we will with peaks and valleys, booms and busts, outsourcing, insourcing, offshoring, etc and so on. The future he describes is happening now and will continue to happen – over time, there will be technology to replace Actors in feature films and singers performing music. The doctor that is diagnosing your current medical condition may be in a Russian Call Center along with 200 of his best medical friends. Get ready for it – it will happen and it will be both worse and better than we can imagine.

The only constant is change – and most of us don’t like change – but it happens anyway. The link to the story is below – read it and start thinking about how you can be active in creating your future self. Enjoy!!

Your Job in 2020 – by Martin Ford – Forbes – April 8, 2010

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Springwise | Ten snappy new business ideas from around the world

An online store in 60 seconds
Financial services / Retail

To set up a store, users simply indicate which products they'd
like to sell, at what prices and whether they'd like to donate any
portion of their sales to charity. Payments are handled by PayPal.

Buy a tie, give a child a school uniform
Retail / Non-profit, social cause

In many parts of Africa a uniform is a prerequisite for attending school.
In an elegant example of 'buy one, give one', California tie maker
FIGS is donating a school uniform for each purchase on its website.

Electric scooter's battery lifts out for easy charging
Transportation / Eco & sustainability

A big problem with electric vehicles is lack of access to a charging
facility. The Yogo electric scooter solves this with a battery that can
be removed and conveniently recharged in the home or office.

Smart devices to help households monitor energy use
Eco & sustainability / Homes & housing

A device to track how much water is used when showering; a
household energy management dashboard; and light switches and
power cords that show users how much energy they're using.

Mobile dating app lets users share their whereabouts
Lifestyle & leisure / Telecom & mobile

New York-based start-up Urban Signals is a mobile application
that enables immediate in-person connections between people
who share their current location, mood and status.

Supper club features 'stolen' recipes
Food & beverage

London's Stolen Supper Club's USP is to feature recipes inspired
by the menus of the world's best chefs. The company has
a weekly meal event, a market stall, and also does deliveries.

Restaurant's app lets users order and pay for food
Food & beverage / Telecom & mobile

Wagamama's iPhone app lets users locate a restaurant, browse the
current menu, customise and place an order, track when it will be
ready, and even make a secure payment for the meal.

A donation to charity for each hour wasted online
Life hacks / Non-profit, social cause

To turn time wasted online into something good and to impose a cost
incentive to do it less, ProcrasDonate tracks time spent on selected
websites and tots up a donation to the user's favourite causes.

T-shirt uses augmented reality for webcam game
Fashion & beauty

A recent design by Swedish T-shirt manufacturer T-post lets
wearers play an online game of rock-paper-scissors with a
computer-generated arm that appears to be coming out of the shirt.

Smartphone app serves as video 'black box' for cars
Telecom & mobile / Automotive

DailyRoads Voyager is a free application for Android-powered
mobile phones that works as a 'black box' for vehicles: recording,
timestamping and geotagging videos of users' journeys.

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Some BIG Ideas | Twelve smart new business ideas from around the world

Online marketplace for $5 tasks
Life hacks

Israel-based Fiverr lets anyone sell virtually any type of service for $5.
Categories on the site include 'Fun & Bizarre' and 'Silly Stuff' along
with more staid classics such as 'Graphics' and 'Social Marketing'.

Double-decker 'bustaurant' serves up high-end cuisine
Food & beverage

World Fare is a Los Angeles-based double-decker bus with a kitchen
downstairs and a rooftop restaurant above. Patrons are served a
variety of high-end dishes from around the world.

Domino's recruits fans to sell its pizza
Marketing & advertising / Food & beverage

A Domino's Pizza web widget lets consumers serve as marketeers
for the brand through social networking pages and blogs. In return
they get a commission on any orders placed through their pages.

Gadget-friendly sash holds personal devices
Fashion & beauty / Style & design

The Bandee is a multifunctional sash designed to hold mobile phones,
iPods and all sorts of other gadgets that otherwise fill up pockets or
get lost in handbags.

Charging infrastructure for electric vehicles
Automotive / Eco & sustainability

SemaConnect has developed an automated solution that lets parking
operators run networks of vehicle charging systems with web-based
management tools and customer authentification using smart cards.

London and Mumbai compared and contrasted
Tourism & travel / Marketing & advertising / Media & publishing

British Airways' Metrotwin focuses on comparing and contrasting city
'twins'. Recommendations for the best neighbourhoods, businesses,
attractions and places to visit are rewarded with air miles.

Inflatable car booster seat for kids
Automotive / Style & design

BubbleBum is an inflatable, safety-approved car booster seat,
providing a lightweight, portable alternative to more cumbersome
counterparts, and ideal for holidays, school trips and car pooling.

Helping minipreneurs sell their expertise
Education

Estonia-based Traindom is a platform for information entrepreneurs
to market their expertise by means of its easy-to-use product creation
interface, client management tools, and payment systems.

Supermarket builds 'bee hotels' to improve pollination
Retail / Eco & sustainability

To help address bee decline in the UK and its impact on local crops,
British retailer Sainsbury's has announced it will install eight 'bee hotels'
on land around their new eco-store in Dursley, Gloucestershire.

Platform to create and monetise online schools
Education / Media & publishing

Users of San Francisco-based Supercool School can create real-time
classes and make them available to an unlimited number of students
around the world.

Web simulator for trying on virtual tattoos
Fashion & beauty

California-based TatMash overlays tattoo designs onto users'
photographs to allow consumers to see what a tattoo would
look like on them before they commit to the real thing.

Online retailers install widget to enable group buying
Retail

SyncFu is a free widget that any e-commerce website can install
to let deal-seeking consumers team up for volume discounts and
see how the price drops as more people commit to a purchase.

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