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I’m joining HYPE to help companies get more value from innovation

HYPE Innovation logoIt is my pleasure and honor to announce that today I’ve joined HYPE Innovation as a full-time Senior Consultant. HYPE provides an enterprise innovation management software platform – HYPE Enterprise – used by large companies around the globe. In my consulting role, I’ll be working hands-on with customers across the phases of innovation maturity:

  • Beginning the journey toward a more collaborative innovation approach
  • Expanding usage as they gain experience and see results
  • Developing advanced ecosystems to drive next generation business models and products

This role is a change for me, moving from product to consulting.  But it’s one I embrace and I’m looking forward to. I’ve talked a lot here about the need to understand customers’ jobs-to-be-done. By working side-by-side with organizations, I’m going to have a deep understanding of their jobs-to-be-done for innovation and problem-solving. And even better, an opportunity to help make them successful.

HYPE is headquartered in Bonn, Germany, and I’ll be working from San Francisco. In this post, I want to cover two areas:

  1. State of the innovation management market
  2. What makes HYPE special

State of innovation management market

Enterprise traction

Over the past five years, I’ve worked with a number of customers and thought leaders in the innovation management space. People that are committed to and passionate about this. The first thing to know is that enterprises are actively exploring ways to be better at innovating. Many, IDC Predictions 2014many of the companies you know and buy products and services from. From its roots as online suggestions boxes, innovation management has become a full-fledged corporate discipline. In fact, research firm IDC forecasts that by the end of 2016, 60% of the Fortune 500 will be using social-enabled innovation management solutions. Which, if you follow the innovation diffusion lifecycle, means we’ll start to see the late majority taking it up.

Focused ideation

When I began working in the innovation field, the primary use case for innovation management software was to be an open suggestion box, equipped with social features (visibility, commenting, voting). Anytime someone had an idea, they had a place to post it. Unfortunately, that approach proved limited in engagement and value. Thus, that model has changed significantly the past few years. Organizations are now running campaigns that target narrow, specific topics. They are time-boxed events, which in a broad  sense is a form of game mechanic that spurs greater participation. Campaigns offer these advantages:

  • Ready recipients – campaign sponsors – to engage, elaborate and select ideas
  • Continuously refreshing the program and reason for people to participate
  • Address specific organization needs

Beyond innovation

Innovation – however you define it – continues to be a prominent use case. And with good reason, as CEOs rate it a top priority. There are multiple disciplines that address innovation: crowdsourcing, design thinking, TRIZ, incubators, lean startup, etc. Generally, innovation is considered creating something new which adds value.

But I’m seeing signs that crowdsourcing  is being applied in other ways outside the traditional view of innovation. Here are three examples:

  • Problem-solving: An example of this is cost-saving initiatives. People out on the front lines are seeing opportunities for improvement that are hidden from decision-makers in the headquarters.
  • Positive deviance: In every large organization, there are people who have figured out a different, better way to do something. Crowdsourcing helps find these people, and their novel approaches can be identified and shared.
  • Trend-spotting: With an army of employees out in the field, organizations have a ready way to canvas an area. People can post what they’re seeing, a valuable source of raw insight.

Idea development, evaluation and selection take center stage

When I talk with people not familiar with the innovation management field, I find their understanding often to be, “Oh, so it’s an idea collection app.” That is a necessary feature of course – no ideas, no innovation. But it’s a comical under-representation of what innovation management is. As Professor Tim Kastelle notes:

“Generating ideas is the easiest part. Most organisations already have enough ideas. The challenge for them is not generating more but implementing their existing ideas more effectively.”

As the market matures, companies are seeking ways to better advance the most promising ideas. This is where the puck’s heading.

Innovation becomes part of the purposeful collaboration canon

In the broader enterprise 2.0 social business market, the integration of ‘social’ into core business functions has emerged as the basis of value. This is a change from the movement’s early roots. Constellation Research VP Alan Lepofsky nicely illustrates this evolution to Generation 3 as follows:

Alan Lepofsky socbiz generations

Innovation is a prominent use case that benefits from the application of social and collaboration. You can see more in Alan’s Slideshare presentation on innovation and purposeful collaboration.

What makes HYPE special

From my experience in the industry and in my meetings with the team, three things about HYPE stand out in the innovation management field

  1. Singular focus on customers’ innovation jobs-to-be-done
  2. Market leadership
  3. Demonstrated customer excellence

Singular focus on customers’ innovation jobs-to-be-done

HYPE has over a decade of experience in the innovation market. It’s roots were in the R&D world, with a deep emphasis on how to maximize the value of ideas. In industry parlance, this is sometimes called the “back-end” of innovation. It’s a sophisticated activity with variance in process for each organization. Through the years of working with customers, HYPE has become adept at handling this phase of innovation. I know it’s not easy – I did some initial product work myself in this realm previously. Success here hinges on understanding what customers seek to achieve, and acting on it.

With the rise of social business and increased interest in better utilizing the collective smarts of employees, HYPE moved forward to the “front-end” of innovation. Powerful features include campaign development, participation management, idea surfacing, collaboration and evaluation. With this investment of time and effort, HYPE offers the most functional full-cycle innovation process in the industry:

HYPE - full lifecycle innovation process

With deep expertise built throughout the platform, HYPE is well-positioned to address organizations’ innovation jobs-to-be-done.

Market leadership

Forrester Wave - Innovation Management 3Q13 - rotatedIn the past few years, HYPE has increased its presence in the market, following an investment from ViewPoint Capital Partners. From its roots in Germany, the company has become the leader in Europe. It is now seeing good growth in broader EMEA, the United States and South America.

Recently, Forrester published its Wave for Innovation Management Tools. Analyst Chip Gliedman reviewed 14 of the most significant vendors in the space.  The analysis included:

  • Innovation lifecycle: the components of a complete cycle
  • CIO concerns: governance, security, architecture, integration
  • Product roadmap
  • Management team
  • Vision

HYPE achieved the top overall ranking, the coveted “top right” position of the Wave.

Demonstrated customer excellence

HYPE Customers

HYPE has over 170 customers from around the world. Consistent with my experience, the industries are varied. Some representative names are shown to the left. This is something one sees when it comes to innovation: everyone does it. There’s really not a specific sector that pursues innovation and problem-solving more than others.

HYPE has a number of long-term relationships. And it’s fair to say that once you’re a client of HYPE, you’ll be happy, satisfied and get results. Annual churn is less than 4%. On a monthly basis, that’s roughly 0.3%, at the magic level for enterprise software companies.

That level of customer satisfaction doesn’t “just happen”. Rather, it comes from being dedicated to customers’ success and working to make them successful at their jobs-to-be-done.

That HYPE logo?

Finally, about the HYPE logo. I actually do not yet know the background on it. But take a look at it. See some similarities to different hand gestures?

HYPE logo meaning

I’m looking forward to joining the team.

I’m @bhc3 on Twitter.

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5 Social Business Truths

Meritocracy trumps hierarchy: Companies don’t get a “pass” on Wall Street or the London Exchange becauswe they’re been around way before new companies. Political candidates aren’t immune from beingf being upended when they don’t perform. Why should work be any different? Companies that focus on the meritocracy are focused on growth. Those that pay too much attention to hierarchy are limiting their growth.

Knowledge and ideas want to be free: When you learn something new, ever feel the urge to share it? When you know something that can help, don’t you want to answer a question? When you have an idea, isn’t it great to bounce off others? From a behavioral and technological perspective, we want knowledge and ideas to be free. Why lock ‘em down?

Cognitive surplus must be a competitive advantage: Cognitive surplus – knowledge, perspectives, heuristics – is perhaps one of the most wasted assets organizations have. Each person’s surplus can be applied to a much greater range of problems and opportunities than what defines the daily tasks of her day. It’s a shame if employees go home every day without going beyond their job titles at the office.

Social and interest graphs generate positive returns: Activity streams, notifications, public interest spaces, recommendations – these new tools are exposing people to a greater range of relevant information than ever before. We’re not limited to our immediate cubicle neighbors. We are part of larger social and interest graphs. This increases the diversity of inputs, which increases our own, and organizational, odds of finding optimal solutions.

Transparency raises organizational IQ: When the left hand knows what the right hand is doing, we operate more effectively. Knowing the different initiatives, information and problems affecting other parts of the organization makes us better prepared in our own work. Operating in a vacuum sucks, because you get knocked over hard by things you don’t know. Transparency of information and conversations makes everyone smarter in their own work.

How Much of a Relationship Do Your Customers Actually Want?

On the Harvard Business Review, Matt Dixon and Lara Ponomareff wrote a piece that caught my eye, Why Your Customers Don’t Want to Talk to You. Consumers increasingly prefer self-service, and the authors speculate:

Maybe customers are shifting toward self service because they don’t want a relationship with companies. While this secular trend could be explained away as just a change in consumers’ channel preferences, skeptics might argue that customers never wanted the kind of relationship that companies have always hoped for, and that self service now allows customers the “out” they’ve been looking for all along.

For managers hell-bent on deepening relationships with their customers, that’s a sobering thought.

That last line is particularly relevant to the new thinking: that companies need to engage their customers in “conversations”, which social media is enabling. A related question to ask is, do they really want a “relationship” at all with companies?

What exactly is a “relationship”?

Let’s start with an important point: what exactly is a “relationship”? Put simply, it’s a two-way connection I have with you based on some form of interaction(s). In that sense, buying a product from a company qualifies as a “relationship”. But that’s insufficient. We want to know how deep is the relationship?

The thinking of Mark Granovetter is relevant, provided helpfully by Lithium’s Michael Wu. Four elements determine the depth of a relationship:

  1. Time spend together
  2. Emotional intensity
  3. Intimacy (mutual confiding)
  4. Reciprocity

Now, apply those elements of relationship to the way you think about companies from which you buy. What’s the emotional intensity you have with the power company? Do you find yourself confiding with Amazon.com when you purchase something? How much time are you and your bank spending together?

Those questions point to a more commonly understood definition for relationship: high scores on the four Granovetter dimensions. But scoring high on those dimensions is an insurmountable hurdle for most companies vis-à-vis their customers.

The job your product is hired to do

This idea that companies need to think in terms of the “job their product has been hired to do” is one I learned from Clayton Christensen, Harvard professor and author of The Innovator’s Dilemma. It’s understanding why the customer buys your product, and what needs it fulfills. “Needs” often being different than thinking in terms of the features a product has.

This is what defines the relationship customers want to have with a company.

Leading social CRM thinker Wim Rampen argues this in his post Social CRM – What Relationships Should You Care For, And Why? In the post, he states this:

From a company’s perspective, a relationship with your Customers is not what you need most. You need most to understand what job it is your Customers are trying to get done.

Wim is spot on. That’s the innovation mantra. Nicely applied to social CRM.

The depth of a customer’s relationship depends on the job you’re hired to do

My interest in having a relationship – the deeper, more commonly understood definition – with a company is directly proportional to the complexity of the job I’ve hired you to do, as follows:

Here’s how the different jobs size up.

Efficiency, simplicity, convenience

In a consumer-based world, we have but only so much bandwidth for purchasing things which require lots of our time to engage and use. Mostly, we need commodities.

And you know what? We need ‘em fast, reliable and without taking up a lot of time. In this bucket o’ jobs-to-be-done, spending a lot of cycles engaging with many companies in ongoing relationships just will not cut it. How would you get anything else done?

It’s as Jon Husband shared with me on Twitter:

<Do they even want a relationship with companies? #scrm #acinsights> I don’t

The nature of relationships in this scenario is transactional. And there’s nothing wrong with that. My bank gives me efficiency, low cost and no hassles. I’m loyal, but I don’t have a deep relationship with them.

They just happen to satisfy well a job of convenience and efficiency I need done.

Episodic interaction events

Mountain Dew ran a great social media campaign called DEWmocracy. DEWmocracy got consumers involved in a number of initiatives:

  • Ad agency selection
  • New flavor selection
  • New drink names
  • Package creation

The campaign was a great example of an episodic event to drive interactions. This was relationship-building beyond the core product offering. What made it successful is that it extended the job-to-be-done. Sure, Mountain Dew tastes great, and you can enjoy cans of it. That alone really points toward convenience and simplicity, the lowest=level relationship.

But Mountain Dew was able to elevate the complexity of the job. It got people involved in the support processes for the production and distribution. Genius, and of course, risky. But many consumers responded. They found it fun to participate, and Mountain Dew reciprocated, as Ad Age notes:

Once you’ve engaged consumers, you can’t stop. Mtn Dew made an effort to let consumers know why it was taking their advice, as well as why it wasn’t.

Now that DEWmocracy has mostly run its course, the relationship will become shallow again. Until the next event. But it has raised market awareness, and established what the company is about in consumers’ minds.

One last note here. Old Spice’s recent social media marketing blitz was not an example of addressing the job-to-be-done. It was pure marketing awareness, a point well-made by Jacob Morgan. And it worked.

Complex job, long-term usage

SAP. When you think of SAP software, do you think, “lightweight, simple-to-use, rip-n-replace anytime?” No, you don’t. SAP software is legendarily complex and powerful. They are a huge company with thousands of customers, billions in revenue and myriad business applications.

This is a complex job-to-be-done.

SAP maintains a strong customer community and extended ecosystem (including the SAP Developer Network) to manage its relationships with customers. Which makes absolute sense considering the complexity of the job-to-be-done. Customers want a relationship with SAP. Frankly, they need it.

Complex jobs often mean several things for customers:

  • Recurring need to interact with the company for information
  • Higher switching costs, increasing the need to understand what the company’s future direction is
  • Variety of use cases, meaning many ideas for future product versions

It is in these situations where the popular notion of “relationship” most closely matches what customers seek.

The core focus is the job-to-be-done

Clayton Christensen wrote this with regard to the way companies should consider their customers:

With few exceptions, every job people need or want to do has a social, a functional, and an emotional dimension. If marketers understand each of these dimensions, then they can design a product that’s precisely targeted to the job. In other words, the job, not the customer, is the fundamental unit of analysis for a marketer who hopes to develop products that customers will buy.

That’s the perspective  from companies toward customers, not so much for relationships, but for product features.

The job is also the fundamental unit of analysis going the other way, customers toward companies. Understanding the complexity of the job-to-be-done points to how deep a relationship customers want.

I’m @bhc3 on Twitter.

When Should Management Push Enterprise 2.0 Adoption?

After the Boston edition of the Enterprise 2.0 Conference, IBM’s Rawn Shah wrote a great follow-up post outlining ten observations from the event. A couple points that I found myself agreeing with wholeheartedly were:

Adoption is about transforming human behaviors at work – More folks are starting to recognize that it is not trivial to bring communities and other social environments to life.

‘Let’s get beyond “adoption”’ – This was another sentiment I heard several times, but I attribute it to short-attention span. The general statement was ‘adoption’ was last-year’s thing, and we needed a new ‘thing’.

The underlying philosophy of his post contrasts with that of Paula Thornton, who finds talk of driving adoption to be antithetical to the true nature of Enterprise 2.0. As she described in a post from several months ago:

If you have to “drive adoption” you’ve failed at 2.0 design and implementation. The fundamentals of 2.0 are based on design that is organic — meets the individual where they are and adapts based on feedback — it emerges. The ‘adoption’ comes from rigorous ‘adaptation’ — it continuously morphs based on involvement from the ‘masses’. If done right, you can’t keep them away…because you’ve brought the scratch for their itch.

While I empathize with her design-driven perspective, I personally find there to be more to people’s adoption patterns. Sometimes the superior design does not win. Existing network effects may prove a high barrier to adoption of something new. Embedded history makes the current approach valuable. And other reasons intrude.

In considering adoption, we have the push strategy (by management), and the pull strategy (viral, organically spreads). Both are viable approaches. The key factor is to determine when each needs to be employed.

A Decision Framework for Pushing Enterprise 2.0 Adoption

The graphic below outlines a basis for determining when Enterprise 2.0 adoption must be pushed, and when to let adoption be pulled:

The two key factors in the framework are user-centric and organization-centric.

The X-axis highlights a key reality. If a current approach/technology is working well enough for users, there is an inertia to making a switch of any kind. This principle is nicely captured in the “9x problem”, an explanation by Harvard professor John Gourville that was highlighted by Andrew McAfee. The 9x problem is this:

Users will overvalue existing products/solutions by 3 times, and undervalue the benefits of a new products/solutions by 3 times.

We’re for the most part risk-averse (e.g. technology adoption lifecycle is back-end loaded), and giving up existing ways presents a level of uncertainty. It’s the devil we know versus the devil we don’t. We place a value on the certainty of current methods, even if flawed.

The other part of the 9x equation is that users will place an uncertainty discount against new products/solutions enumerated benefits. Yes, it’s true. We don’t always buy everything we’re told.

The Y-axis speaks to the value of E2.0 to organizations. Certainly there will be use cases that can drive high value for the organization. And just as certainly, there will be those use cases that contribute little to organizational value.

Let’s run through the different approaches mapped on the graph, clockwise from top right.

Requires a Top-Down Push

Situation:

  • Existing ways are ‘good enough’ for employees
  • Executives see great potential for value from adoption

What might this be? Imagine management has seen too many examples of people missing key information and connecting the dots well with others are working on. An enlightened C-level type knows there is an opportunity to pick it up a level.

So some sort of social software – e.g. wiki, collaboration groups, etc. – is selected to make this a reality. But guess what? People keep emailing to one another and saving docs to the LAN.

Why? Because those are the tools they know, there is no learning curve and everyone operates on a shared set of processes and assumptions. Things work “as is”.

This is where management needs to wield its power, and come up with ways to influence employees to alter their entrenched behaviors that work “good enough”.

Mix a Push-Pull Strategy

Situation:

  • Existing ways are actually not “good enough”
  • There is high value in large-scale adoption

This is the home run of initiatives. Solves a “what’s in it for me” need of individuals, while also presenting a great chance to advance the value of the organization.

An innovation platform is a good example here. A place for individuals to express those ideas that fire them up or just plain solve annoyances. Which get lost in the email inbox.

But the opportunity for new ideas that deliver to the bottom line gets management’s attention.

Pull works here, as word spreads about the initiative. But management has an interest in making sure everyone is aware of the initiative, as soon as possible. Push tactics are good supplements.

Let It Grow Organically

Situation:

  • Existing ways are actually not “good enough”
  • There is low value in large-scale adoption

This is a tough one. Clearly the “Enterprise 2.0 way” can solve a problem for employees, but its adoption cannot be seen to lead to high impact on company value. An example here? Hmm…tough one. Enterprise bookmarking might be one area. Solves the, “how do I find things?” conundrum, for me personally and for others. But hard to see just how it will increase firm value. At least on a standalone basis.

Best to let these initiatives grow of their own accord. Let their value emerge, often with stories.

Don’t Waste Your Time

Situation:

  • Existing ways are ‘good enough’ for employees
  • There is low value in large-scale adoption

Suffice to say, this one should be killed before it ever starts.

My Ten Favorite Tweets – Week Ending 051410

From the home office in outer space, where I’m blogging from the space shuttle Atlantis’s final mission

#1: RT @georgedearing Pilot advertisers happy with initial results from Twitter’s new ad program // http://bit.ly/twittermarketers // #fb [ADWEEK]

#2: The debate about pilot projects in social business http://bit.ly/c3EViV by @leebryant #e20

#3: RT @amyjokim How to build a sustainable community http://bit.ly/bJtkes (practical tips for hands-on community management)

#4: Applies to enterprises as well: RT @sidburgess How Cul-de-Sacs Are Killing Your Community http://bit.ly/cGg6yi #e20

#5: Does Reputation Ranking Make a Difference in Idea Management? (via Spigit blog) http://bit.ly/cfPWa0 #innovation #e20 #reputation

#6: Customer Suggestions: When to Listen, When to Ignore >> Pragmatic Marketing #innovation http://post.ly/fMoz

#7: RT @jorgebarba Game-based marketing takes off from frequent flyer programs to social media | VentureBeat http://ff.im/-k2bW1

#8: Noticing an uptick in Foursquare friend requests lately.

#9: Would love a laptop like this: Future Designer laptop – ROLLTOP http://bit.ly/dkypIY

#10: My kindergarten son made this “spy” laptop computer today – no Flash support though… http://twitpic.com/1nk9pw

My Ten Favorite Tweets – Week Ending 042310

From the home office in some Redwood City bar, where I’m using my pick-up line on all the single ladies, “Did you happen to find my Congressional Medal of Honor around here? Or my iPhone 4G?”

#1: RT @TechCrunch Foursquare Becomes More Business-Friendly http://tcrn.ch/b45AJY > Biz owners can claim their businesses

#2: RT @jowyang Heard that foursquare us charging brands $50,000 for a custom branded badge. Good deal or bad? Think it through.

#3: RT @courtenaybird GOOD READ: It’s Time For An Open Database Of Places http://ow.ly/1A4HL (via @erickschonfeld)

#4: RT @briansolis The State and Future of Twitter 2010: Part Two http://bit.ly/aAV0r9

#5: “Sucks Less” Features http://bit.ly/an6s50 > funny product management perspective from my b-school classmate @trochte

#6: RT @amcafee New blog post up. “Drop the Pilot” advocates AGAINST small-scale #E20 pilot projects: http://bit.ly/aKD3WF

#7: This @gapingvoid cartoon well-describes the creative process, incl writing. http://bit.ly/9LlVIN Sometimes you got it, sometimes you don’t.

#8: Had to check to make sure this wasn’t dated April 1. It’s for real: “Vacationing a human right, EU chief says” http://bit.ly/bMYAH0

#9: I hear stories about Americans’ deep discontent with government, and I’m just not one of them. We’re working our way out of a deep well.

#10: Hilarious site that any parent of young kids can appreciate: www.shitmykidsruined.com (h/t @rochelle)

Six Factors in Emergent Innovation

In discussing employee-driven innovation, having a technology platform to deliver on objectives is a key part of a company’s strategy. Hard to get everyone tuned in when you rely only on email and conversations with your cubicle mates. But that’s just one factor. There are many other considerations for companies seeking to vault to the top of their industries through greater innovation.

One set of characteristics are what I term factors of “emergent” innovation. I use emergent here in the sense of conditions which let good ideas find their level inside a company, regardless of source. Think of this as an alternative to R&D-led innovation, or innovations decided solely in the executive suite and cast down for implementation by the troops.

Of course, there are more than six factors to emergent innovation. For instance, the actual process of turning someone’s idea into an innovation project has several factors of its own. But these six are a good start.

This post is long. The links below will take you directly to a specific section.

  1. Healthy use of doubt
  2. Rough alternatives
  3. Experiments
  4. Resource margin
  5. Positive deviants
  6. Diversity of viewpoints

So what are these factors?

Healthy Use of Doubt

In creative thought, doubt is good. Doubt produces creative efficiency.

David Kord Murray, Borrowing Brilliance (page 167)

Credit: Eleaf

Doubt is a word pregnant with different connotations. It can have a strong meaning of, “I don’t believe you.” In terms of working on innovations, that meaning has the potential to undermine collaborative work.

But in the quote above from David Kord Murray, it has a more productive meaning. “Doubt” refers to continually challenging existing practices to determine how things can be done better. These may be company practices, or your own. As Murray explains it, without doubt you are implicitly accepting that current practices are the best they can be. You get locked in on one way to do things. Yet, as has been documented, the rate of change in global markets is accelerating. Locking into the one best way to do things becomes a recipe for a declining business.

In his book Borrowing Brilliance, Murray relates that Albert Einstein had an apathetic relationship to his first Theory of Relativity. Why? He maintained a healthy use of doubt toward it, knowing there was more to be done. He didn’t settle on his first theory, and eventually came up with his better second Theory of Relativity.

One note about the term “healthy” here. Doubt is a mental framework in which you look at things and consider how they can be better. Doubt should not become a systemic condition that causes people to stop efforts on current projects, as in “we’re doing this wrong, so why bother”. It’d be wrong to assume everything a company does is poor and must be scrapped. Or that every individual opinion must be acted upon.

Rough Alternatives

A Stanford study investigating quick executive decision making noted that fast decision makers (a necessary component of agility) operated as though they had a rotating radar antenna; constantly refreshing context and identifying alternative paths of action. Their speed came from having rough alternatives at hand if conditions changed.

Christopher Meyer, LinkedIn discussion

Intuitively, this concept makes a lot of sense. While it may seem obvious, it’s not for those working in the trenches. The general approach is selecting the course of action, and execute like hell. Go big or go home.

And that “execution” mentality is right. It is appropriate to aggressively execute on an initiative once a decision has been made. That’s how companies get ahead.

Meyer’s comment from the LinkedIn discussion above gets at an aspect of company strategy that’s growing in importance. Be ready to pull the trigger on an alternative when conditions change. Which means having a set of rough alternatives ready.

The notion of “doubt” in the previous section is useful here. Again, not “doubt” in the sense of undermining efforts to see a particular course of action through to success. Rather, maintain a healthy perspective that even as you’re working on one way to do something, there likely are better ways still, undiscovered.

Maintaining a set of alternatives is applicable to all parts of an organization. Senior level executives, mid-level managers, project leaders and anyone doing their job. I’d argue that people in the trenches are closer to the reality of how an initiative is faring, and have a sense of rough alternatives. Enable these individuals to share what they’re seeing.

Experiments

The cost of experimentation is now the same or less than the cost of analysis. You can get more value for time, more value for dollar, more value for euro, by doing a quick experiment than from doing a sophisticated analysis. In fact, your quick experiment can make your sophisticated analysis better.

Michael Schrage, Research Fellow at MIT Center for Digital Business

Credit: jurvetson

Once a proposed idea has been identified as having merit, it needs to be put through its paces. This historically was challenging, due to constraints on building out prototypes or simulating new features. But the world has gotten more digital, and as such much more can be tested than historically has been possible. In a Wall Street Journal article by the quoted author above, Michael Schrage, Google is noted for its ongoing experiments with search results. This isn’t surprising of course. Google exists in a digital world.

But what about non-digital firms? Wal-Mart regularly experiments with signage, displays and shelf layouts to gauge the effect of different ideas. Tesco experiments with different factors that determine when another checkout lane should be opened.

Even in the realm of healthcare, experiments are being conducted. Not drug trials, but improvements to processes. Kaiser Permanente operates The Sidney R. Garfield Health Care Innovation Center. The Center “brings together technology, architecture, nurses, doctors and patients with human-centered design thinking and low-fidelity prototyping and design to brainstorm and test tools and programs for patient-centered care in a mock hospital, clinic, office or home environment.”

Experiments are a data-based method of testing potential innovations. But they differ from current practice for many corporations, which to rely less on your own experiments and ore on the advice of well-paid consultants. Why? Dan Ariely observes the following in Harvard Business Review:

There’s the false sense of security that heeding experts provides. When we pay consultants, we get an answer from them and not a list of experiments to conduct. We tend to value answers over questions because answers allow us to take action, while questions mean that we need to keep thinking.

Emergent innovation is better served by internally managed experiments, not advice from external experts.

Resource Margin

The concept of resource margin is a really good one. I came across this nice description:

No matter how I see it, agility to me is much to do with introducing margin. What I mean by this is how much the necessary margin to have within your processes, knowledge base and human resources to allow for changes. You may have a norm for people to continuously question their processes and products, “Only the paranoid survives”, but if they have no room/margin for change, it’s hard to get them to react with agility.

Jeevandra Sivarajah, LinkedIn discussion

Credit: See MidTN.com (aka Brent)

This observation just makes sense. In a world of increased busyness, employees need that bit of flex in their schedules to explore improvements to something: processes, products, customer service, etc.

Google, of course, is famous for its 20% time. Employees have the freedom to set aside their daily work and invest some cycles on exploring something new. 3M has long had a similar policy.

Now for companies, I can see the math here…employees only working 4/5 of their time on core daily tasks needed. Means you need to hire 5/4 number of employees, or an extra 25% headcount. Economy is still wobbly, hmmm…

The reality is that innovation is a core part of companies’ growth. Which company doesn’t see that? Sure, there are firms devoted to be fast followers rather than innovators. But most companies thrive-or-suffer based on their innovation performance. Note, innovation is not just slick new products.

Employees should have innovation as part of their core jobs. In other words, sure they need to file their TPS Reports and process N number of transactions. But part of their day includes thinking about improvements and bigger ideas, socializing these ideas, researching them, figuring out experiments for them, etc.

Alternatively, companies can set up special ideation events. Maybe employees don’t have the time or wherewithal to pursue an innovation all the way through. But others in a company will, and they will benefit from hearing the crowdsourced ideas of employees.

Resource margin plays an important role in emergent innovation.

Positive Deviants

I really love the juxtaposition of “positive” and “deviants”. Two words that are often at odds. But they work well together. What is a positive deviant?

This initiative is an example of “positive deviance,” an approach to behavioral and social change. Instead of imposing solutions from without, the method identifies outliers in a community who, despite having no special advantages, are doing exceptionally well.

Rebecca Tuhus-Dubrow, The power of positive deviants

Credit: asw909

As someone who has worked in large organizations, the observation that there are people with different, smart approaches is one I wholeheartedly endorse. Seen it plenty of times, from my work with headquarters, in-store and warehouse personnel at Hecht’s Department Store to my days of investment banking with Bank of America.

Here’s a good example. The sales crew at Spigit do a good amount of outbound marketing to prospective customers. As anyone who has used email for this knows, it’s hard to figure out what works in terms of email subject lines and email body. One of our sales guys came up with a totally different subject line, certainly different than anything I would have come up with. And it works. The open rate is much better for his subject line. No paid consultants needed – someone figured out a way that works.

What’s particularly appealing here is that these innovations arise from the everyday work and problem-solving people do. This is the benefit of tapping this amazing resource: employees’ ingenuity and problem solving acumen.

Leveraging the “found” solutions inside an organization is part of emergent innovation.

Diversity of Viewpoints

Ideas benefit from a diversity of viewpoints. Professor Ron Burt studied something called “structural holes”, and employees who broker them. Think of structural holes as gaps between groups of people in an organization. These gaps prevent people from accessing one another’s feedback, perspective and expertise.

People with connections across structural holes have early access to diverse, often contradictory, information and interpretations which gives them a competitive advantage in seeing and developing good ideas. People connected to groups beyond their own can expect to find themselves delivering valuable ideas, seeming to be gifted with creativity. This is not creativity born of genius. It is creativity as an import-export business.

Professor Ron Burt, Structural Holes and Good Ideas (pdf)

Credit: Marco Bellucci

Professor Burt’s empirical analysis identified exposure to a greater range of perspectives as a key element of generating higher quality ideas. I particularly like this part of his observation: “diverse, often contradictory, information and interpretations”.

That’s right. Disagreeing perspectives are good for innovation. Not a chorus of “amens”. Contradictory knowledge and perspectives as productive innovation friction.

For companies, these collaborative networks are a form of crowdsourcing. Sourcing ideas from around the organization, and more importantly letting others with interest provide feedback and ideas for refinement.

Emergent innovation benefits significantly from…emergent perspectives gathered from around the organization. Note that email and over-the-cubicle-wall conversations are limiting factors on innovation. Hard to get a diversity of perspectives with those as your only sharing modes.

For companies seeking to accelerate innovation, those six characteristics are a solid beginning. What do you think?

My Ten Favorite Tweets – Week Ending 041610

From the home office in Iceland, where I’m stuffing rags down that volcano to get planes flying again…

#1: You know those ads where Domino’s admits their pizza sucked? Guess who saw profits double. http://bit.ly/bayH3b

#2: RT @drewmaniac Ignore Foursquare at Your Peril – An Analysis of Potential by @JayBaer http://bit.ly/dqzxtz /via @unmarketing

#3: RT @mathewi the FT will let users of Foursquare who check in at certain spots earn points towards a free subscription: http://is.gd/bmvGU

#4: RT @TNWlocation Why Dave McClure is Wrong about LBS http://tnw.to/15wnR

#5: RT @building43 Spigit: the platform for democratic & fair company decision makers http://is.gd/bubWS by @scobleizer

#6: Shepherding Social Business Transformation « Dachis Group Collaboratory http://dach.is/2P by @cdangson #e20

#7: Enterprise 2.0 and improved business performance http://bit.ly/aMMBF3 by @dhinchcliffe > Can social tools deliver “hard numbers”?

#8: CIO Magazine: Better Business Decisions: winning the race one report at a time http://bit.ly/cecqXm #e20

#9: RT @CrisBuckley Have You Been Institutionalized By Your Job? [BLOG] http://bit.ly/bDzGbP

#10: Out here on I-5 where there’s nothing around. Checked Foursquare, someone created “The Middle of Freakin Nowhere”. Checked in there.

My Ten Favorite Tweets – Week Ending 032610

From the home office in CTU, where I’m taking control of ’24′, not going to let it be canceled

#1: RT @scobleizer http://bestc.am/T90 This is Paul Pluschkell CEO of @spigit which is cool ideation software used by tons of companies. Now onto @pipioinc

#2: Wow – my moment in @dahowlett‘s spotlight: Enterprise 2.0: let’s be careful out there http://bit.ly/bQR3vj Great stuff, needs several reads

#3: Enterprise 2.0 and our tendency to think and talk in terms of efficiency http://bit.ly/cDe3mO by @oscarberg #e20

#4: Discussion is a good thing! RT @rawn Had to write disagreeing response to spigit post “Maslow’s Hierarchy of E2.0 ROI” http://bit.ly/9ltJo6

#5: Avoiding Innovation Chaos inside Companies (via Spigit blog) http://bit.ly/anh1cY #innovation #e20

#6: RT @govfresh Manor in WSJ: ‘A Hotbed of Tech Innovation: the Government of Manor, Texas’ http://bit.ly/aUyxbF #gov20

#7: Is Crowdsourcing Disruptive? http://bit.ly/aYybmt by @stephenshapiro > Cost per design vs cost of acquisition #innovation

#8: Can truly great design be done the open source way? http://bit.ly/bcZszD by @cdgrams > a bazaar or a cathedral? #design

#9: Actual newspaper headline: “Republicans turned off by the size of Obama’s package.” http://bit.ly/crhh2O #hcr?

#10: RT @skydiver “One of the things I love about Twitter is that you can totally make up quotations.” – Abraham Lincoln

The Two-Year Lag from Web 2.0 to Enterprise 2.0

The Enterprise 2.0 sector draws heavy inspiration from innovations in the Web 2.0 world. Indeed, the name itself, Enterprise “2.0” reflects this influence. From a product management perspective, Web 2.0, and its derivations social networking and social media are great proving grounds for features before coding them into your application.

A fruitful area to review is how long it takes for a feature to go from some level of decent adoption in the consumer realm to becoming part of the mainstream Enterprise 2.0 vendor landscape. The list of features that have made the jump – forums, wikis, blogs, tagging, social networking, activity streams, status updates – is impressive. Let’s look at three features that made the leap, with an eye toward how long it took.

Tool Year of Web Adoption Year of E2.0 Adoption
Wikis 2002 2004
Social networking 2006 2008
Microblogging 2007 2009

Here’s the back-up for those dates.

Wikis: Wikis got their start back in 1995. From there they grew, and the application became popular with computer programmers. But it hadn’t caught hold outside that culture. Wikipedia was launched in January 2001, and grew rapidly over its first two years. It wasn’t yet mainstream, but it clearly had caught a wave among early adopters. As recounted on the history of wikis page in Wikipedia, 2004 – 2006 saw an explosion of interest in wikis from companies.

Social networking: Defined as enabling social profiles, and connecting with others. Facebook started in 2004, and grew very popular among colleges. In 2006, it opened up its membership beyond college students, and turned down a $1 billion offer from Yahoo! Clearly, the company was on fire (even then).

In April 2008, Jive released Clearspace 2.0, which was touted as Facebook for the enterprise. Socialtext 3.0 was released in September 2008, and it included Socialtext People, its social networking feature. And I can tell you that at BEA Systems, there was a second quarter 2008 release of a Facebook for the enterprise in the Aqualogic product line.

Microblogging: Twitter. The source of it all. Twitter actually was conceived as an idea back in 2000, and company was started from a 2006 brainstorming session at Odeo. But it really hit big with the early adopter set at 2007′s South by Southwest.

Microblogging broke into the Enterprise 2.0 world when Yammer won best-of-show at the September 2008 TechCrunch 50. But that doesn’t count as mainstreaming into Enterprise 2.0. Yammer proceeded to grow strongly the next few months. And Socialtext introduced Signals in March 2009.

So there’s some documentation backing my 2-year cycle for Web 2.0 innovations to move from hitting the early adopter set to the Enterprise 2.0 sector. Note that this doesn’t apply to every Web 2.0 innovation. No one ever talked about “MySpace for the Enterprise” and there’s really not a Flickr in the Enterprise 2.0 umbrella.

Which raises a question about today’s hottest Web 2.0 trend…

Foursquare for the Enterprise?

Foursquare, and its up-n-coming competitor Gowalla, are all the rage these days. These location-based social networks are good for seeing what friends are doing. Foursquare also integrates features that reward participation (points), add a sense of competition (mayors) and provide recognition (badges).

Mark Fidelman recently wrote about Foursquare and Enterprise 2.0. And using our handy two-year lag calculation, somewhere in early 2012 the first mainstream Enterprise 2.0 will integrate Foursquare features. Actually, two of them.

Location check-ins

Employees will check in their locations from all around the globe. Sales meetings, customer on-site deployments, sourcing trips, conferences, etc. Sure, this info might be in the Outlook Calendar. But even if it is, Outlook Calendar entries aren’t social objects. These check-ins will allow you to know where colleagues are, including those you don’t know well. But wouldn’t it be nice to know if some other employee visited someplace you’re investigating?

These check-ins can be even more tactical. Folks who are part of a meeting in a conference room all check-in. Voila! Meeting attendance, which everyone can see. For an individual employee, these check-ins become a personal history of what you did over the past week.

Mayorships, Badges, Points

Foursquare makes it fun, and for many people, addicting, to check-in. You get points and *bonuses* when you check into the places you go. If you check in to the same place enough times, you get to be mayor of a venue and tweet it about it. You earn badges for accomplishing different things in the Foursquare system.

These features have had the effect of motivating legions of people to participate. It’s fun to see your stats. It’s fun to get a little competitive.  It’s great when you get that notification that you’ve earned a new badge.

Andrew McAfee wrote a series of posts exploring the question of whether knowledge workers should have Enterprise 2.0 ratings. This chart was from one of his posts:

Well, the Foursquare approach certainly takes us down this path, albeit in a fun way. I’d be remiss if I didn’t call out that Spigit already has these tools in place (ahead of its time?).

So what do you think? Personally, I’m looking forward to more Foursquare in the enterprise.

I’m @bhc3 on Twitter.

My Ten Favorite Tweets – Week Ending 031210

From the home office at SXSW in Austin, where I’m not…

#1: Is Collaboration Enough for Knowledge Management? http://bit.ly/bXdNhj by @deb_lavoy #e20 #km

#2: What Enterprise 2.0 vendors can learn from FourSquare http://tinyurl.com/y9bsxc6 by @markfidelman

#3: RT @Irregulars Wikipedia’s Decline and the 7 Types of Human Motivation http://bit.ly/atzPLC

#4: White House expands Gov 2.0 with landmark crowdsourcing directive (via Spigit blog) http://bit.ly/auo6FK #gov20 #innovation

#5: “Contests are increasingly being used as a tool to solve society’s most entrenched problems” http://bit.ly/9KFJmy #crowdsourcing

#6: RT @VentureBeat Spigit offers social media platform for company contests http://ow.ly/1q0m44 #crowdsourcing

#7: RT @elldir Woops! Too long ago I told @bhc3 that I would post how I think about different dimensions of innovation. http://bit.ly/dcNd7s

#8: Five inter-related innovation problems that an organizational structure should address – Scott Anthony HBR #innovation http://post.ly/SOB2

#9: Reading @bokeen‘s write-up of his chatroulette experience. Damn funny, and pretty much what I’d expect. http://bit.ly/9Wnd20

#10: RT @anildash I’m surprised none of you dorks camped outside of your own house last night, then ran back in to order an iPad

My Ten Favorite Tweets – Week Ending 030510

From the home office in Hawaii, where I swear those waves look bigger than normal…right?…you see it too, don’t you?…sorta…

#1: Funniest man on TV: Craig Ferguson http://bit.ly/brF6j2 by @berkun > “The lack of autonomy always explains mediocrity” #innovation

#2: Curation’s Growing Value http://bit.ly/a5JNnR > I also turned to Twitter more than news sites for #hitsunami updates

#3: Who are your positive deviants? (via Spigit blog) http://bit.ly/clDDJw #e20 #innovation

#4: Why CEOs Don’t Get Innovation http://bit.ly/9tgigJ @lindegaard‘s Business Week column #innovation

#5: Is collaboration enough to connect the dots? http://bit.ly/9oonRd on the Product Four blog #e20

#6: Interesting concept: “Social Sigma” (vs. Six Sigma) to improve products http://bit.ly/aWMlp2 by Forrester’s @gcolony #innovation

#7: This Just Ain’t Gonna Work Out http://bit.ly/cDcZU5 by First Round Capital’s @kentgoldman > Importance of pivoting business models

#8: Enterprise 2.0 Trends: Which vendors are in the running? http://bit.ly/anZI2Q by @markfidelman #e20

#9: Today’s @gapingvoid cartoon email is a fave of mine: “It’s easy to spot a purist. They’re the ones without any skin in the game.”

#10: I’ll admit: If I see one too many a “Hallmark card” inspirational quote from someone, I unfollow.

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