Innovator Profiles
Id | Summary Bio | Answer 1 | Answer 2 | Answer 3 | Answer 4 | Answer 5 | Leader | Actions |
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66 | <p>Bill brings over 30 years of experience in the communications and enterprise IT industries. He was CTO at SUMMUS Software. He served at Amdocs as a CTO of the Product Business Unit where he was responsible for the development of real-time customer experience platforms. Before joining Amdocs, Bill served as SVP of product planning and architecture at DST Innovis, where he was responsible for strategic technology platforms, product management and pre-sales for the cable, broadband and satellite industries. Bill is also known for designing and hand crafting custom furniture, as well as for his skills on the shooting range.</p> | <p>Everyone is talking about AI. The difference for Serviceaide is that we introduced AI into production all the way back in 2017. Our approach is also different in that we are focused on an AI-First approach. This means that our team considers how AI can take the operational lead in managing and automating routine requests and work tasks as we design and build systems; we don’t just add in AI where it’s easy. The industry will still need people, but Serviceaide is helping to shift their focus to more strategic, high value work. This will result in increased productivity and efficiency.</p> | <p>Technology is evolving quicky, in some cases daily. Take for example, Large Language Models, we have shifted our approach to monthly in order to maximize performance from the best model. For many customers, it's hard to keep up with the pace of innovation which makes having both the knowledge and maturity to consider the benefits of new technology in their DevOps and overall planning incredibly important. One example is examining how to make Ai driven automation work with legacy systems, and implement the changes required. To this end, Serviceaide is often introducing innovation and becoming an advisor on Digital Transformations to many of our clients.</p> | <p>Bringing innovation to Service Management is our company and departmental mission. The development team is passionate about leveraging emerging technologies to maximize worker productivity. Our service and support vertical extends from IT to potentially all departments of an organization. This passion for what AI can do touches everyone in the company from development to support to marketing and sales. When you have those “ah ha” moments and see all the ways the technology can be applied, it really motivates the team to drive even harder and naturally fosters creativity.</p> | <p>I see the issue as how a company adopts the newer technologies that either automates routine labor-intensive tasks or provides a boost to employees that must spend a lot of time searching for and working with information. Generative AI is certainly the biggest news at the moment, and everyone is rightly looking to capitalize on it, or be a victim of their competitors that do. But it can be scary to add something completely different that is not well understood and comes with risk if not leveraged properly. The great news is that Serviceaide and others are bringing new solutions to the market that will drive digital process transformation - not AI for AI’s sake but AI that solves real problems and makes quantifiable improvements that go straight to the bottom line. My advice is to look for solutions that have designed an AI strategy into the product, have a clear vision and roadmap, and can show true ROI. Too many vendors are looking for quick wins with AI, and they are very likely to create unsustainable architectures and have a lot of churn in their product as a result.</p> | <p>Knowledge federation is really making a difference for a lot of bigger enterprises that suffer from having information scattered all over the place. Many organizations have one place to store personal information such as One drive or One Note, another tool to collaborate with your team, another system to get IT help, another to ask HR questions, yet another for internal business procedures and operations, and then a whole different set of systems that provide online training. Collaboration, operational and departmental and training systems being disconnected is a chronic problem for organizations. By pulling all this disparate information together, via knowledge federation, employees can find what they need from one source. Employing a good AI-based interface that can make inquires in natural language rather than using keywords or navigating to where the information is a productivity game changer.</p> | Bill Guinn | View Edit Delete |
41 | <p>Look at almost any plastic soda bottle, and you will find that it stands on five ribs that are integral to the walls. The invention of the “petaloid base” in the 1970s offers crucial insight into an innovation process that is highly relevant to business today, and to the growing movement away from functional roles and toward value creation. Because pressurized plastic expands like a balloon under pressure, bottles at the time were two-piece products that stood on a rigid cup – and efforts to create a one-piece bottle had cost tens of millions, without success.</p> <p>Gautam Mahajan—the co-inventor of the petaloid base, then head of research and engineering at Continental Can— told BPI that his team solved the problem by reframing it in this way: where does the bottle <em>want</em> to go when under pressure, and using the concept of entropy, where everyone including the bottle resists being forced into an ordered state? It had been assumed in the industry that the bottle would need an incremental innovation, and that the machines that make them would require an expensive disruptive innovation—since they would have to create far more pressure to force out those five bulges. Mahajan proved the opposite: the disruptive petaloid solution changed the entire industry, while the machines needed only affordable shock-absorbing improvements, and timing changes.</p> <p>Now a leading author and thought leader, Mahajan moves executives and academics globally to his belief that the purpose of companies is not to generate profit, but to create value—where profit and competitiveness are by-products. “We all know the purpose of attending college is education, not grades. Grades are a measure of how well you have studied,” he says. “Why then do business leaders still insist that the purpose of a business is profits? Indeed, why do we study for a Masters of Business Administration when it should be a Masters in Value Creation? Everything is process-driven at present, but we want the mind-set to be changed.”</p> <p>Mahajan’s new book, “Value Creation: The Definitive Guide for Business Leaders”, was introduced this month by the Director of the Indian Institute of Management in Bangalore, and received high praise at a recent business literary festival. Gautam is setting up Value Creation Forums around the world and catalyzing colleges to conduct research on Value Creation. He believes values create value, and that efforts beyond formal job descriptions—efforts as small as a smile— generate brand equity for both the employee and the company.</p> <p>Mahajan is now the Founding Editor of the Journal of Creating Value, which enables academic research become more responsive and relevant to business practitioners, while promoting value creation as the new “true north” compass heading for executives. This approach echoes recent findings at Harvard Business School, in which Michael W. Toffel noted that, “The lack of practical relevance of much of our research might suggest that few of us also have the ambition to improve the decisions of the managers and policymakers whose actions we study.” The business leader who Harvard quoted on the issue—Donovan Neale-May, executive director of the Chief Marketing Officer (CMO) Council—also noted that, “There is often a disconnect between practitioners and academics, who tend to be far removed from operational complexities and market dynamics”.</p> <p>“I see myself as a generalist, as someone who has created and who thinks differently, who doesn’t get stuck with the run of the mill thinking,” says Mahajan. Previously, he was President of the Indo-American Chamber of Commerce, which is the only bilateral chamber between the US and India, and includes 14 offices between the two countries. He is also President of Inter-Link India and Customer Value Foundation and went on to become a leading consultant to top Indian companies, as well as the author of three seminal books on value. Mahajan told BPI that his consistent advice to innovators is to ban any concerns about cost when at the early, explorative end of the innovation process. Conversely, he also advises executives to free themselves from the fear of making incremental increases on the prices of their products, since customers will pay for value.</p> <p>Mahajan poses a fundamental thought challenge to companies innovating in areas like customer experience and “customer journey”—where customers are provided ever-better experiences when returning defecting products. “They forget that customers do not want that journey in the first place,” he says. “Why not rather innovate toward zero complaints, and zero product returns?”</p> | <p>Value Creation is a distinctive mind-set. It is a mentality driven by enhanced self-esteem, awareness, and pro-activeness. It goes beyond just doing your job, it is doing something extra. Value Creation is executing proactive, imaginative, or inspired actions that increase the net worth of products, services, or an entire business. This creates better gains or value for customers, stakeholders, and shareholders. Value Creation stimulates executives and business leaders to generate improved value for customers, driving success for the organization; it creates customer-conscious companies.</p> <p>Value Creation Forums have been started in the US, Europe and Asia, along with Value Creation research. Programs are underway to modify MBA teaching to become less functional and more value creation oriented. The role of an executive is not just to be a good manager, administrator, or a good efficiency expert; his or her role is to create value. Ahead of my most recent book, I realized that value is completely misunderstood. Everyone has a meaning for it—some think value means price, benefits, or importance— you can think of it in any way. In business jargon, value is creating financial benefits, and for people around you, which will eventually create greater financial benefit for you. You cannot set out and say you’re going to create value for yourself; you have to create value for others, such that they recognize you are a person of greater value.</p> <p>You hear words like CRM, customer satisfaction, customer experience, customer journey, customer this and that, yet all are only one part of what the customer is looking for. When you start investing heavily in things like customer experience and customer journey, you are essentially saying that they are very important—and they are—but you forget the context of their importance.</p> <p>Once I have bought a cellphone, what is the experience I really want? I want it to work; I don’t want to waste a lot of time on maintenance. The moment I have to go back to the company—and that’s the experience companies are investing on improving but not the experience I as a customer want in the first place—I am making an extra journey. I just want to be left alone. Companies tend to glorify a journey that customers don’t want in the first place instead of making sure I do not have a problem. The real thing they should be working on is how to prevent that journey. Companies should be innovating toward zero complaints, toward zero defects.</p> <p>It is easier to give examples of value destruction because they are so obvious. Value creation in a very simplistic sense is everything that goes beyond your job. You could be an accountant who does efficient work, you can’t fault his numbers, but the guy comes up to you and says, you know the tax laws are going to change and maybe we should do something with our investments and our accounting practice so we get an advantage. He’s done something extra. Everyone whose career progresses is creating value, but often he does not know that because he is doing it unconsciously. If you were conscious about it, you might create a little more value, and might destroy a little less.</p> <p>Stephen Vargo is on the board of our journal, and he coined the phrase, ‘service-dominant logic’. Before that, there were other concepts, but he said no, it is not about products. Everyone is serving everyone and the product is just part of the service. This year, there might be thousands of papers written on service dominant logic, talking about value co-creation, but few people seem to know what value co-creation is. Many see it as some kind of a vague thing that is nice to think about.</p> <p>We first started a journal that addresses both academics and practitioners: that’s a difficult mix because academics like to write in journals, and practitioners generally don’t like to write. They like to read. What we want is for academics to write in the way that business people can really understand, that is relevant. Then we encourage the practitioners to use this. On the other hand, we want practitioners to write about things that make academics pay notice. So if I write about zero complaints, they may wish to do research and find the best way to get to zero complaints. The second thing we have done is start Value Creation Forums around the world, and we have leaders in their fields come together and discuss value creation.</p> <p>We set up one in the Benelux with academics and practitioners, and many universities in the Netherlands came together and discussed three things: one, how can you create value for the student in the present courses. The second was to look at courses like HR and IT and see if you can just add one lecture on value creation for those courses. The third was to have a general management elective which is based on value creation. If you look at HR, it is probably one of the most important functions in the company since people--employees, partners and customers— are really important. The question I always ask is, ‘Why don’t HR guys become CEOs? Why are they called a staff function?’ That is because they do their functional work; they really do not do their value creation work. Once they start to do it, they begin to create immense value for the company.</p> <p>We have asked a college in India to look at values and value—what you stand for, such as ethics, morals, and integrity). The idea is that if you are a college that talks about values, do your students who become teachers do better than teachers for whom values were never inculcated? There is a professor at Wharton that does customer lifetime value; we want to work together so that he can correlate customer value-added with customer lifetime value. </p> | <p>Let’s look at small things that prevent people from being innovators. One is self-esteem. If you do not believe in yourself, you cannot create value. Two, you really have to become aware; if you don’t notice things around you, it becomes difficult to innovate. Most people who truly create value do not need a financial incentive to innovate; they are natural innovators because they have awareness and believe in themselves. Fear of failure comes in when you are concerned only about keeping your job.</p> <p>Another thing I find really slows down innovation is bringing the financial thought process onto the innovation table. You sit at the table, and someone comes up with an idea, and the guy next to him says, ‘That can never work because it is going to be too expensive.’ You then discard it because you have forgotten that things become cheaper and cheaper. So, my advice to innovators is to forget the cost part of it and say, ‘What is the best way of doing this?’ Then ask how to make it practical from a cost point of view. Too many good ideas just go away because some joker says it will hurt cash flow or will be too expensive.</p> <p>I am not sure that disruptive innovation is the only way to go. A few years ago, I went with students in an innovation course and suggested they work with the long distance taxi service to prevent one way hiring, and ensure the taxi guy got a return ride. It would save costs for the passenger and increase profits for the taxi person. This was like a pre-Uber move, but no one looked at it. Would this be called disruptive or an add on? Today, Uber would call it disruptive.</p> <p>With the development of the petaloid bottle base, we had machines that were taking a pounding, because the pressures required to blow the petaloid bottle were much higher than the simpler bottle. The design group came up with a way that would cost $75,000 per machine—in the late 70’s—and we had about 45 machines. They were redoing the machine. That’s disruptive. I said that is the wrong approach. We ended up doing everything at a cost of only about $8,000. We studied the machine and asked, ‘What is the machine actually doing?’ Why not just reduce the shock impact on the machines with cheap shock absorbers, and proper timing and then they will stop braking?</p> | <p>I suppose we could have called value creation, value innovation. To me, creation is a little more basic, more intrinsic. Innovation is something that takes something and goes to the next step. The goal is to take something that exists and try modify it a little. If the core of an MBA course should completely change, from one of teaching people to be good managers or efficient administrators, to becoming value creators that could be disruptive.</p> <p>Because many of the functional courses would start to disappear, and people would really start to learn how to create real value in HRD—instead of measuring whether the guy comes to work on time, or try to measure his performance— you are really doing something that increases the value to customers and society. Many functions could get outsourced into administration departments, and true HR Value Creation would remain in HR. If your brand equity increases, the brand equity of the company increases. People notice when value is created. In the Netherlands, we are currently doing a program with Microsoft with finance managers. Oracle is going to do something in this area on the West coast in the US.</p> | <p>I think it is about mind-set. One is business schools moving toward value creation, and away from doing functional teaching. Instead of a masters of business administration, you have a masters of value creation, or value management. A second thing is that companies start to drive their businesses from the point of view of long term value creation. One example was the CEO of Unilever, Paul Polman, who was able to convince his board that they should look at long term results—one to five years—rather than quarterly. What they got was a higher rate of growth overall, and fewer perturbations in share prices.</p> <p>One of the things I fear is the impact of automation. Too many of the younger generation are so smart at using tools that they forget the fundamentals. Data analytics is a great tool as long as you understand what lies behind. It is great if you analyze and measure the customer journey to a fine science, except you might miss the fact that customers might not want that journey, and you are actually making the journey more important. The focus goes away from zero complaints. Everything is process driven; we want the mind-set to be changed. We emphasize the better mind-set through our value creation councils.</p> <p>In India, the Tata companies are moving from business excellence to value creation thought processes. Unilever is doing good thinking. When they decided not to buy palm oil from a group of growers in Malaysia and Thailand because of the ecological impact, the fear was that prices would go up and customers would not buy. However, customers continued to buy because they favored sustainability. We found at Tata Power that values create value. </p> | <p>This morning, I got a call from a wrong number, and I then received six calls from the same number. I thought: how do I block this guy? I would pay for an app that allowed me to do that! All jokes aside, the real disruptive thing will be when we start to build things the way the human body is built. Today, the structures we build are external, and our body is internal.</p> <p>There is complex innovation and complicated innovation. With complex, we are talking about moving targets. In a complicated one, we know it is only a matter of putting all the known pieces together, like a jigsaw puzzle. A complicated problem might be building a big building, but all the steps are known. On the other hand, if you are trying to make a building that is a living building—perhaps a self-healing building—that is complex. Again, if you look at great innovations, you’ll tend to find a value creation mindset behind them.</p> | Gautam Mahajan | View Edit Delete |
65 | A distinguished engineer and technology leader, Paul McEnroe has played a central role in the development of a variety of industry-changing technologies. Most notably, he and a team he formed in 1969 while at IBM created the Universal Product Code (UPC), also known as the barcode, along with related products, that transformed the retail and grocery industry. McEnroe recently published his book, “<a href="https://www.amazon.com/Barcode-Created-Worlds-Ubiquitous-Technologies/dp/B0CBTW2WM5">The Barcode: How a Team Created One of the World's Most Ubiquitous Technologies</a>.” | <p>We started the bar code initiative because the CEO of IBM at the time, Frank Cary, wanted to expand the company beyond mainframe computers. At first, Frank wanted to find the best companies in Silicon Valley and buy them. But it was decided that no, if you buy small startup companies, the most important people would quit because they don’t want IBM culture. They don't want blue suits and white shirts and red ties and black wing tips, and all that garbage. Frank’s response was to try to find somebody within IBM and to get them to act like and treat them like they’re a startup. Luckily, they knocked on my door. We were able to decide what business we would go after. We wanted something that was going to generate data and decided to go after point of sale. We saw that at the point of sale, particularly for supermarkets but also major retailers, there was a big need for item identification, automatic inventory control and automatic checkout.</p> <p>The barcode had a tremendous impact on operational efficiency and business intelligence. For big retailers like Macy’s, it had a major influence on their purchase orders and their ability to see what sold quickly and what was effective. It really helped them with reordering and stocking their stores much more effectively and efficiently. For supermarkets it was a little different. Item prices were constantly changing, and there was a tremendous expense at price marking and remarking. But with the bar code, it could go back into the controller in the back room and look up the price. In addition, the scanner could read omnidirectionally so it wasn’t necessary to orient the item to read it. Clerks could pull items across the scanner very quickly, which sped up checkout dramatically. You could also run tests on where to position products to improve sales.</p> | <p>I would say the impediments we faced were in two major categories: technical and sociopolitical. The success of the barcode was not entirely due to the quality of the code, but its incorporation into an entire system. To build the scanner we had to use a new, bright light source, and that was the laser which had just been made available. Then there was a communication system. We had to send a lot of data from the check stand to the back room. Some stores in Europe had as many as 40 scanners at the front of the store. Each one was sending a signal back. They had to be high speed signals all going into a box at the back of the store, which had a disc file that recorded everything. We had to change not only the communication technology into what later became a local area network, but we had to change the magnetic recording. We were the first ones to use the Winchester file technology that IBM had perfected. We had to make this system fail proof because if it failed, a store would have to shut down. Because of this, we had to duplex the controller, adding another layer of technology. So we had leverage duplex controllers, new magnetics, new communications, new scanners, in addition to the code, in order to build the system.</p> <p>The second impediment was the sociopolitical part. We were set to open one of the first stores in Tyson's Corner, Virginia. The engineer I sent to supervise called to tell me the store couldn’t open. It wasn’t because of a system failure. There were union picket lines blocking the entry to the store. They were afraid they were going to lose checkout clerk positions. But what turned out to be a more serious problem was the concern of legislators and government administrators who were concerned that the price coming off the item would be bad for the consumer. Eighteen states passed laws against the scanner or passed laws that made it more difficult. I traveled around the country to meet with state legislators and explained the advantages of scanning and the fact that the price would be marked on the shelf. Supermarkets were usually paying about $10 to anybody who got a mis-scan. But our code was very effective and had very few errors.</p> | <p>It was quite different than it is today. Today, pick up a newspaper or go on the Internet, and innovation and entrepreneurship is discussed widely. That wasn't so much the case in the late fifties and early sixties, and even the seventies. Innovation came primarily from the engineering organizations. IBM was divided up between sales, marketing, services, and so on. Development was managed by engineers. In the early part of that period we had something like 15 laboratories increasing to 20 or so worldwide later down the road. The laboratory average size may have been a thousand engineers and other support people. The bigger laboratories were many times larger than that and they were managed by engineers, and engineers were thinking about new products. We hired the best people we could. So they were pretty forward thinking people, and they were very innovative.</p> <p>Frank Kerry, the CEO, decided we needed to get into some new business. And after he decided to build from within, he realized you couldn't be innovative and have a whole bunch of rules. Some of those rules said things like you have build everything within IBM. But we realized that wasn’t possible. A decade later, when IBM did the PC, the only PC part that was made in IBM was the keyboard. I wouldn’t say there was a top-down commitment to innovation so much a commitment to excellence. IBM wanted to do the right thing. The right thing for society. The right thing for shareholders. The right thing for employees. Leadership hired top quality people, and those people did the innovation. Of course, it's a little different today.</p> | <p>I think that the most interesting technology right now is AI. I was involved with it a little bit back at IBM. We built some machines that kind of used that technique. I think of it in a simplistic fashion as guessing. With a computer nowadays, you can guess a million answers possible to something, and then test them in a fraction of a second. Then you put that together in a more complex way, and you're writing essays, and it looks like you're John Steinbeck.</p> <p>There are things in the bar code that are going forward that I think are going to change even more. We have QR code, which is a 2 dimensional code, whereas our barcode is one dimensional. And that's an opportunity for more complex applications. I think it's growth will be bigger than the barcodes. But I don't think the barcode will go away. The companies that use it, make themselves more efficient. I think the bar code is going be around for decades. But things like the QR code, RFID and other applications are going to develop markets that require larger data in each transaction or each item.</p> <p>It's always hard to predict what's going to happen. But certainly the Internet has given us a new way of learning, and you can get answers to lots of questions that were hard to find 50 years ago. We just need to develop our minds in such a way that we can stay open and keep looking to the future.</p> | <p>There are a lot of high level people thinking about that question today. And they're coming up with better answers, and schools and universities are working on that, too. And then we have the Internet to support these efforts. You can go on the Internet and get answers so fast, whereas before, the answer was stuck deep in a library. I think that all of the conversations taking place about how to go about this are very good. They help lead people in the right direction. I don't know which of those directions is exactly right, but I think it’s very encouraging that we have so many successful people thinking about it and young people just coming along who are using their minds in open ways.</p> <p>If you want to get into innovation and be successful, look at the world from the point of view of what people need. Then have a level of expertise in a certain set of fields. I’m looking at a flashlight on my desk. If you're in a company that's building lights, you need to think about everything from what are the materials that go into the product that you need to make? What do people need? How do they use lights? And then start thinking about different things and make proposals.</p> <p>Be sure that as you develop your capability to sell your ideas and to go meet with people and discuss these things and get them out into the open. I went to engineering school, but one of the things I did that was very important was being on the debate team at my university. Later, when I had to go to IBM managers to get money for my ideas, not unlike going to venture capitalists today, the skill to sell my ideas was really important.</p> | Paul McEnroe | View Edit Delete |
38 | <p>Serving as Arla’s Head of Open Innovation, Barraza is a chemical engineer by training who is passionate about collaborations between enterprises, academia and entrepreneurs. He studied intellectual property law to arm himself with a tool that has since proved critical in his work on open innovation, both at Unilever and now at Arla.</p> | <p>Historically, an export mindset, the focus on quality and the embrace of innovation have been competitive advantages for Arla. In general, a strong export focus in Sweden and Denmark was a big difference from co-operative movements in other countries. In Denmark, for example, one driver was exports to the UK of butter and bacon, which originated two of the biggest companies in Denmark today: Danish Crown and Arla</p> <p>I see the DNA of the company as not just being a co-op, but innovative in terms of product quality. That continues today – to be able to maintain our dominant position in markets like the UK, and bolster our ability to enter new markets in China and the Middle East and U.S. as well. Particularly in China and the Middle East, the credentials of being high quality about products really helps our exports – stemming from the famously stringent laws we have (in Scandinavia and Europe).</p> <p>In addition to having strong dairy products, we are also manufacturers for other companies, so we also need to be competitive in technologies and efficiencies for production.</p> <p>What I do is often researching about research – how can we find new ways to interact with other types of research partners, such as academic partners and smaller companies, to unlock ecosystems of innovation. A big game changer for us has been the ability to translate the Scandinavian traditions of dairy products and foods to deepen appeal within diverse global markets. One of these products is Skyr, which is based on an old Nordic tradition: translating Skyr according to the taste of other parts of world, like the UK and Holland – that’s been a game changer. Another has been the change in formulation in some of our high protein products, which have allowed very successful recent launches in China.</p> <p>We are also moving toward more strategic partnerships with universities. Last year, we partnered with Copenhagen University and Aarhus University to launch the Arla Dairy Health and Nutrition Excellence Center. I believe dairy can unlock major global problems in terms of nutrition, and we have only begun to tap the potential applications of natural milk proteins. We actively seek out disruptive ideas from both internal and external sources; connecting with small companies and entrepreneurs. Our approach is based around ‘technology push; consumer pull” – so that potential new products must see a deep collaboration between from both scientists and marketers before launch.</p> <p>Last year, we put together the Arla Food Innovation Challenge, in partnership with the Creative Business Cup. This challenged entrepreneurial ideas in competition, and brought winners to Copenhagen – and we were able to see fantastic ideas from preexisting businesses as well as from early-stage entrepreneurs. Stimulating entrepreneurs in this way gives us a new way of thinking about our products – providing new insights from external sources. I am very passionate about working with small and medium enterprises, which is what we will be pushing going forward.</p> | <p>Innovating in the dairy products space may seem less sexy than creating the next digital app, so it is a challenge to attract top entrepreneurial talent to the industry. And yet we are doing so at Arla. Our goal – to create the future of dairy – offers the kind of ambition that interests young innovators. And our potential for positive impact on societies around the globe is immense, in terms of health and nutrition in particular. We are trying to raise the level of expectation of what we need from small companies in the food industry, and showing that we can create opportunities for innovation. We also challenge entrepreneurs directly through competitions like the Innovation Challenge.</p> <p>Another potential impediment to innovation in the industry is the traction of ideas between seniority levels. In some companies, just the fact that, say, a junior scientist comes up with an idea may mean that idea does not go forward. But while that is a barrier present in other companies, I see it as a big positive contrast for us. At Arla, everybody has a say, and the weighting is the same for good ideas, no matter where it comes from.</p> <p>I also think that having gurus on innovation does not suit our industry – it is more about what works. The ability for anyone to put forward a proposal leads to a broader source of internal ideas. On the flip side, there is a greater challenge to reach a consensus – you may think that breaking consensus would be a barrier to innovation in a conservative environment, but the way we try to address that is to harness external sources.</p> <p>I learned so much during my time at Unilever, which was one of the initial drivers worldwide of open innovation, together with Procter & Gamble. Unilever was creating new models of innovation before they appeared in textbooks. But the pace was such that there was time to experiment and develop iterations of prototypes. At Arla, open innovation is also a major feature, but the culture is a little different, partly because the speed at which things need to happen is greater. We try different things and must make almost instantaneous decisions on what works and what does not work, which, at times, may be a challenge.</p> | <p>Arla, of course, has a long history of innovation, but I think our roots in the Nordic countries really promotes this culture, and that culture itself also presents Arla with a big advantage in foreign markets.</p> <p>To be successful in the future, dairy companies will need to have strong credentials on sustainability. Consumers and customers in foreign markets know that the emphasis on sustainability in the Nordics is way ahead of other parts of the world. Already, Arla is the biggest organic milk producer in Europe, and those efforts in sustainability are being recognized abroad.</p> <p>Within the company, there is already a deeply collaborative culture, and part of my role is to try to bring Arla to working closer with SMEs and entrepreneurs, and finding new ways of approaching products and business models outside our own. We invite our large customers to come and innovate with us at the lab. We want to duplicate this more and more, and also to be involved in the incubation of start-ups.</p> | <p>I think the main driver for our business in the future will be people’s concern in living longer and healthier lives – health will be the big driver throughout the food industry. There are increasingly effective technologies being developed to measure your health and fitness, which will impact the type of products we introduce in the market.</p> <p>There will soon be constant monitoring of all of your vital signs – technology which may tell you: “this week, your calcium levels are lower and you may need x grams of cheese.” There is going to be a big connection between products with strong health credentials and the maintenance and self-reporting of heath. Arla is in the right place in terms of understanding consumption and health-monitoring technologies.</p> <p>3-D printing offers some interesting opportunities, linked to new digital challenges. One possibility which is interesting for me, for instance, is whether new technologies can bring back old traditions – such as the popular tradition in the UK, in particular, of having your dairy product and bottle of milk delivered by the milkman to your front step. These are things that might come back in the digital world, and we have some people researching in that space – but aerial drones delivery are not part of that research just yet!</p> | <p>Well, we saw a series of outstanding innovations at the Arla Food Innovation Challenge. The Challenge winner – Miss Can, from Portugal – was a great example of the importance of creative consumer-focused innovation in an industry that may not seem sexy for entrepreneurs; in this case, canned fish.</p> <p>I am also really inspired by the innovations Arla is creating in terms of producing products which are not only ‘nutrient dense’, as our scientists call it, but are also about enjoying your life. It is not just about counting calories – so butter for instance, can be enjoyed as part of the rich life experience, with the right formulation and balance.</p> <p>But top of my list might be Arla’s successful translation of Nordic products into markets and cultures from the U.S. to China.</p> | Harry Barraza | View Edit Delete |
25 | <p>Kate Vitasek is an international authority for her award-winning research and Vested<sup>®</sup> business model for highly collaborative relationships. Vitasek, a Faculty member at the University of Tennessee, has been lauded by <em>World Trade Magazine</em> as one of the “Fabulous 50+1” most influential people impacting global commerce. Vitasek is internationally recognized for her for driving transformation and innovation through highly collaborative and strategic partnerships. She has appeared on Bloomberg radio multiple times, NPR, and on Fox Business News. Her work has been featured in over 300 articles in publications like <em>Forbes, Chief Executive Magazine, CIO Magazine, The Wall Street Journal, Journal of Commerce, World Trade Magazine</em>and<em> </em><em>Outsource Magazine.</em> </p> | <p>The University of Tennessee has been studying the nature of highly successful business relationships since 2003. Our research was originally funded by the United States Air Force with a goal to provide a pathway to long-term, collaborative success among business partners. We codified our findings into a methodology and business model that researchers coined as “Vested” or “Vested Outsourcing.” Our research first gained notoriety with the publication of <a href="http://www.vestedway.com/vested-outsourcing/"><em>Vested Outsourcing: Five Rules That Will Transform Outsourcing</em></a> in 2010. In a way that book began a movement that got people interested in learning how to work better with their strategic partners. The Vested methodology is based on five “rules” that when followed create a business model that fosters a high collaborative “win-win” relationship that purposely creates and shares value so that everyone achieves the win-win.</p> <p>The five rules are:</p> <p>- Focus on <em>outcomes</em>, not transactions: Flip the thinking from a focus on specific transactions to desired outcomes – instead of buying transactions, buy outcomes, which can include targets for availability, reliability, revenue generation, employee or customer satisfaction and the like.</p> <p>- Focus on the <em>what</em>, not the <em>how: </em>If a partnership is truly outcome-based it can no longer have a multiplicity of Service Level Agreements (SLAs) that the buyer is micromanaging. The outsource provider has won the contract because he is supposed to have the expertise that the buyer lacks. So the buyer has to trust the supplier to solve problems. </p> <p>- Agree on clearly defined and measurable outcomes: Make sure everyone is clear and on the same page about their desired outcomes. Ideally, there shouldn't be more than about five high-level metrics. All parties - which may of course include users and other stakeholders that aren't directly signing the contract - need to spend time collaboratively, during the outsourcing process and especially during the contract negotiations, to establish explicit definitions for how relationship success will be measured.</p> <p>- Pricing model with incentives that optimize the business: Vested does not guarantee higher profits for service providers - they are taking a calculated risk. But it does provide them with the tools, autonomy and authority to make strategic investments in processes that can generate a greater ROI and value over time, perhaps more than a conventional cost-plus or fixed price contract might produce over the same period.</p> <p>- Insight versus oversight governance structure: A flexible and credible governance framework makes all the rules work in sync. The structure governing an outsource agreement or business relationship should instill transparency and trust about how operations are developing and improving. And, of course, of where the next threats and challenges may occur, because business happens.</p> | <p>Simply put, the biggest impediments to innovation are old-school, transaction-based, and risk-averse thinking. I’ve found that waiting for the Aha! Moment when it comes to innovation generally means there will be a long wait…It’s much better to create a transparent, incentivized environment that encourages innovation both from within an organization and in conjunction with an organization’s partners.</p> <p>This is what P&G’s CEO, A.G. Lafley, did when he set out to reinvent the company’s innovation business model in radical and precedent-setting fashion. Questioning the sustainability of the conventional “in-house-do-it-ourselves” model, Lafley determined that looking beyond P&G’s walls could produce highly profitable innovations. In his book, <em>The Game Changer,</em> Lafley wrote about how P&G used innovation to spur company results. He wrote, “In an innovation-centered company, managers and employees have no fear of innovation since they have developed the know-how to manage its attendant risk; innovation builds their mental muscles, leading them to new core competencies.” We studied P&G’s highly successful Vested relationship with Jones Lang LaSalle (JLL) for facilities and real estate management as part of our research. JLL has won P&G’s supplier of the year award three times and has won the International Association for Outsourcing Professionals GEO award for innovation in outsourcing for their progressive thinking in how they drive innovation through strategic outsourcing.</p> | <p>This is the million dollar question and why we actually put all of the effort into our research. A Vested agreement is all about engraining innovation into the very fabric of business relationships. Our deep applied research helped us learn what the best were doing. Then our challenge became codifying our learning into a methodology that any organization could use. We’ve now got five books on the topic and seven courses that individuals and organizations can use to help them as they seek to embed an innovation culture into their business relationships.</p> | <p>I think the major trend will be the increasing realization that collaboration and transparent communication is a necessity in today’s technological and globalized business environment.</p> <p>Another trend that will continue to gain traction is the move away from transaction-based business models and the old-school emphasis on lowest cost and labor arbitrage. You’ll definitely see a rise in relational contracts that leverage a Vested or even a sound Performance-Based sourcing business model. Instilling collaboration through relational contracts will free everyone to do what they do best without constantly looking over their shoulder at the bean counters. The key is to make sure you craft these agreements properly. Far too many procurement professionals “say” collaboration and are beginning to shift to a relational contract mindset, yet they don’t have a clue what they are doing. We are working hard to make education accessible and have made five courses available as online courses –so they are widely available. This includes are Creating a Vested Agreement and Getting to We online courses, which both come with an excellent toolkit to help individuals not only learn – but “do.” </p> | <p>I’d refer once again to the P&G example and share some of their case study that’s profiled in the book <a href="http://www.vestedway.com/vested/"><em>Vested: How P&G, McDonald’s and Microsoft are Redefining Winning in Business Relationships</em></a> – which is related in chapter 2. P&G brought its focus on innovation to its facilities management relationship with JLL by challenging JLL to not just <em>take care</em> of its buildings, but to <em>take charge</em> of the buildings. The companies created a commercial agreement that was Vested in nature, meaning that they collaborated to produce win-win results by sharing and creating value through innovative, performance-based goals. Basically they flipped the conventional outsourcing approach on its head: P&G developed a business model around contracting for transformation and results instead of contracting for day-to-day work and transactions.</p> | Kate Vitasek | View Edit Delete |
32 | <p>Described as “a Renaissance man of the digital age,” Pieter Nel – Senior Vice President of Operations at YouNow – is also a pilot, a yacht skipper, a mountain rescue volunteer, and a MIT-award-winning entrepreneur. Previously, the South African-born executive and engineer was the CTO who helped propel the massive early growth of Africa’s largest social network, Mxit – which, at one point, was larger than Twitter.</p> <p>A <a href="http://www.sablenetwork.com/inspirations/advancements-achievements/why-mxit-should-be-a-source-of-both-lessons-and-pride-for-south-africans">new profile</a> on Nel on BPI’s sister platform, the SABLE Accelerator, adds: “The 40-year-old is a key innovator in three of the most coveted fields of the new economy – virtual currencies, machine learning and monetization strategy – and he’s doing it all for YouNow: a platform which defines the social connectivity revolution.” This live video social network is even disrupting the cable TV space, having recorded average active user times for its millions of subscribers at almost 50 minutes every day.</p> <p>Nel positively boils with ideas for disruptive technologies – and told BPI that he has retained his passion to innovate on mobile platforms to empower African entrepreneurs. Is this Q&A, Nel also speaks about the potential for “smart farming” in Africa, enabled by drones and smart data. He has also harnessed his experiences of leading dozens of mountain rescues for a Thought Leadership project that principle tech founders and CEOs should use in navigating the fast-changing market landscape.</p> | <p>Open communication and easy interaction between people of different backgrounds always have a net positive impact on society. We saw this at Mxit where we allowed millions of users to interact and communicate at a mere fraction of the cost of an SMS. Once again at YouNow, we are using the video medium to allow users from all over the world to socialize, meet friends and exchange ideas. It’s an extremely interactive platform – you are chatting directly with the broadcaster and fellow viewers, live. There is this powerful need for social interaction, to share ideas and opinions, and this is a fantastic channel for that impulse.</p> | <p>I believe very few American startups have an understanding of global markets and user bases and how to serve them well. The Internet has moved to mobile and the potential markets in Brazil, Africa, India and South East Asia are far bigger than what you find in the US. Understanding how to be successful in those markets early on in your growth is a key differentiating factor. In that respect, the Mxit experience was extremely advantageous, as we were in many respects years ahead of the curve in terms of building mobile-first global communities. In general I find South Africans to be much more comfortable in a global context and within a culturally diverse environment. </p> | <p>Innovation is a culture that is driven from the top. One needs to create an environment that allows for experimentation and failure. If your team is too afraid to fail, and not incentivized to experiment, they won't do it. It actually requires a lot of discipline too - engineers are bound to continue tinkering with something for too long and one has to have the discipline to move on to try new things. When Herman Heunis was running R&D at his Swist Group Technologies - the directive was to try 10 new things each year. One of them ended up being Mxit.</p> | <p>It is going to become increasingly difficult for business leaders to be effective without the ability to engage deeply in analytical thinking and understanding data, complex systems and non-linear effects. We live in an increasingly complex world, and it's all too easy to make bad decisions based on data that is not fully understood. Every business executive should have a basic understanding of data science and statistics. </p> <p>From a technology perspective, mobile video, virtual reality and the Internet of Things are of course the big trends that most analysts agree on. In the emerging market context I believe that there is a large potential for drones combined with smart data analysis to revolutionize smart farming in Africa. Africa has enormous potential in terms of agriculture and it unfortunately doesn't come to it's full right given all the strife, corruption and policy failures like we've seen in Zimbabwe.</p> | <p>One of the successful behaviors of innovators is to bounce their new ideas off of as many people as possible. MIT professor Hal Gregersen describes this as one of the 5 traits of successful innovators in "The Innovator's DNA." Steve Jobs was always talking about his ideas to everyone - and a diverse set of people too. Innovators continually iterate and enhance their thinking in this fashion. The opportunity to do this is of course much better in dense environments like Silicon Valley, Cambridge, MA and NYC. It's a behavior I try to imitate all the time.</p> | Pieter Nel | View Edit Delete |
20 | <p>Nicole Alexander is a marketer and lecturer; the quintessential unconventional marketer who has an extensive background working in digital media with an enviable list of blue-chip brands. She leads the Innovation Practice for Nielsen China and in this role she advises clients on the importance of evolving consumer journeys to deliver stronger returns on investment while eliminating fragmentation of brand communication across channels. </p> | <p>It should start from both the top and the bottom of an organization. Where leadership enables a culture of inspiring teams to develop ideas around change, provoke them to act on that change and then develop a framework that supports test/pilots to scale innovations that can be successful.</p> | <p>Expertise. Even the best organizations believe they have the skills and expertise in-house or know how to access it in order to plan and make pivotal decisions. With today’s digital landscape there is an access to a global network of creative minds with depth of knowledge across sectors. By utilizing Open Innovation to understand how to develop new solutions, evolve existing frameworks and plan for human capital they will need to change their mindsets in a changing environment.</p> | <p>Unilever has been successful in adopting innovation from the bottom up and top down and supporting it within their communications; their day-to-day planning and how their employees are measured. Their new Global SVP of Consumer & Market Insights, Stan Sthanunathan, has been the mastermind behind this transformation supporting and provoking the organization to think differently from developing Innovation Centers to leveraging integrated data and insight globally. They are looking at consumerization today and in the future – particularly in D&E markets – and leveraging those insights to not only innovate on existing products but develop new ones with an eye on their sustainable footprint.</p> | <p>Machine Learning (i.e. Big Data and AI) will be the largest drivers of technological changes in the coming years, particularly when those solutions can pair complex processing decision making with human-like judgment. In the short-term, the rise of Machine capabilities could increase productivity and economic growth, causing a shift in human capital and growth patterns particularly within D&E markets. We currently see signs of this across medical, research, agriculture and transportation areas. In the longer-term, if Machines exceed human capabilities we will see a devaluation of labor, increase in income disparities paired with increasing GDP. The great challenge will be how we ensure that this rapid technological shift doesn’t leave people behind and blend that with policy change, education, and a fundamental shift in how we view capitalism.</p> | <p>Firstly, I admire any company that challenges the good enough or “this is how things have always been done”, mindset. Uber – who brings drivers together with customers – has innovated the way we experience on-demand transportation while also allowing individuals with a vehicle to be entrepreneurs. </p> | Nicole Alexander | View Edit Delete |
23 | <p>Les C. Meyer is a results-driven serial entrepreneur, global executive leader and MBA with extensive experience in mindful innovation and self-actualization. He has demonstrated creativity in transforming health and performance improvement through innovation leadership. He has worked with many organizations to help them achieve an optimal healthy workplace and workforce and achieve functional wellbeing outcomes via science-based mindfulness, resilience, vitality and sustainability next practices. He has also implemented game changer approaches to the creation of health care delivery, innovative health policies, advanced primary care systems, planned care coordination and proactive community health assurance initiatives. He has integrated meaningful enabling technologies and consumer-centric, integrative health services for a wide variety of worldwide stakeholders.</p> | <p>We guide clients toward viewing their organization, in all facets, with a mindful innovation (MI) approach. MI is a tuned in, creative-thinking leadership engagement process — coupled with a five-step systematic approach including assessment, culture, strategy, implementation and measurement — empowering CEOs to improve the health of the enterprise and its workforce, reduce costs, improve productivity and ultimately, profitability in a global economy.</p> <p>My idea of “hard-wired MI” emerged in mid-2009 as I watched CEOs working feverishly on getting their arms around their “Big Idea.” And then, watching them formulate strategic plans to transform their companies by advancing their breakthrough brainchild as a “constructive, disruptive innovation.” Over and over these leaders were relying on outdated “thriving on chaos” playbooks not recognizing the competitive imperfections in the marketplace. </p> <p>The MI approach prompts quick-response adaptation when CEOs drive the process top down and encourage their people to embrace “imagining” from the bottom up — with all stakeholders striving for the competitive advantage that lies in the health of their people. </p> <p>MI is moment-to-moment, surround-sound awareness of organization health achievement in action. It generates CEO imagination, ingenuity and creative execution in the boardroom. Most importantly, MI upholds the principles of disruptive innovation guru, Clayton Christensen, who introduced the criteria by which a product or service rooted in simple applications relentlessly moves up market, eventually displacing established competitors.</p> <p>MI is imagining what the future could look like, identifying mega-opportunities and building game-changing ways of delivering business value to all stakeholders. We do this by focusing our attention on next generation hard-wiring MI capabilities, technologies and learning system collective impact community collaboratives that provide MI solutions to the health industry in the short and long-term.</p> | <p>Health care costs are unsustainably high and health outcomes are suboptimal. To curb these trends, movement toward value-based care must be put into action.</p> <p>Colleagues at the Institute of Medicine (IOM) of the National Academies: Roundtable on Population Health Improvement, Health Enhancement Research Organization (HERO) Employer-Community Collaboration Committee recently noted two major impediments:</p> <p>1. Health care improvement underperformance, inefficiency and exorbitant costs continue in the U.S. health care system. Although biomedical knowledge, innovations in therapies and surgical procedures, and management of chronic conditions have substantially advanced, American health care has failed to significantly improve in many areas. They include modern medicine’s complexity, the high cost of care and limited investment value to achieve the best care at lower cost. <br /> <br /> 2. Despite spending almost one-fifth of the economy’s output on health care, the quality and safety of care remains uneven. Patient harm remains too common, care is frequently uncoordinated and fragmented, care quality varies significantly across the country and overall health outcomes are not commensurate with the extraordinary level of investment.<br /> <br /> Data is available to make the right decisions to transition into performance improvement incentives, patient-empowered self-care methods and consumer-centric optimal healing environments innovations.</p> | <p>Our focus is on game-changing ideas from independent leaders who create meaningful distinctions in the market and suggest an insightful exchange of information for sound decision making. Our cutting edge methods and innovations performance improvement process tackles the tough organization health challenges impacting enterprise-wide growth, profitability and customer experience optimization to help drive improving value on investment in health care through ground-breaking collective impact methods and sustainable MI leadership engagement innovations.</p> <p>Health innovation strategy is critical to an organization’s success. It trumps everything else. MI is not a genomic-DNA capability we’re born with per se but rather a hard-wiring self-actualization, performance improvement process, which helps CEOs reclaim their creative confidence. The innate ability for leaders to vision breakthrough ideas is strengthened through systems that encourage innovative prowess to move progressively from idea to collective-impact upsurge.</p> <p>MI has moved from a largely obscure practice to a mainstream organizational idea in some leading organizations around the world. Mindful innovators like Mark T. Bertolini, Chairman and CEO, Aetna are accelerating the awareness of “mindfulness use” in the board room and “self-actualization creative execution” in the C-Suite including workforce team member front line alignment to create an upsurge in economic development worldwide.</p> <p>Mindful “organization health” is defined as the ability of an organization to identify, engage, establish, elevate, achieve and renew itself faster than the competition to sustain stellar business performance. This <strong>MI </strong>strategy is among the most powerful an enterprise can execute to create value-based, optimal customer experiences and sustain the power of long-term, brand-equity. </p> <p>Aligning organization health leadership creative confidence and self-actualization is leadership at its best. Remarkable leaders conduct business in a new way — one that imagines a healthy workforce productive advantage, maximizes human potential and tethers the organization to a common set of principles. The task of highly effective leaders is to design high-impact business goals to attain organization health.</p> <p>Thriving organization health business models embed mindful collective impact stakeholder collaboration connections. This is done via a community-based, learning health care system and optimal healing environments that enable a user-friendly connectivity interface. What’s important is that this interface is consistently reliable and seamlessly improves key components. They include population health promotion capabilities and functional wellbeing systems in which science, informatics, incentives and culture are aligned for continuous improvement and innovation. The approach must be aligned with best practices that are seamlessly embedded in the care process, as well as patients and new knowledge captured as an integral byproduct of the care experience to achieve the best care at lower cost.</p> <p>Our MI attitude to think the unthinkable with board chairs — and making the invisible visible with CEOs — continues to drives business success and provide a pathway to achieve competitive advantage and optimize commitments to accelerate organization health action plans and workforce health achievement.</p> | <p>MI is the final frontier to transforming health and performance improvement innovation leadership, achieving optimal healthy workplace realization and making healing as important as curing to sustain company-wide profits and competitive advantage while helping their organization’s workforce evolve, achieve and thrive. </p> <p>The “Masters of MI” realize that creativity is essential to success and something you practice throughout the MI creative confidence, hard-wiring self-actualization achievement process. Bottom-line: Hard-wiring MI activates a cracking-the-code mindset for CEOs and their ability to stay ahead of the innovation curve and sustain company-wide profits and competitive advantage. </p> <p>We are working on other meaningful distinctive hard-wiring MI capabilities, technologies and learning system collective impact collaboratives that will drive the biggest changes in the health industry over the next two years. They include: <br /> <br /> <strong>Health date analytics technologies</strong>: MI approach to empowering organizations with better analytics and informed decision-making guidance to change the course of their organization health strategy and advance plan design action plans.<br /> <br /> <strong>Accountable health and wellbeing initiatives:</strong> MI approach to accountable health collaboratives and the Wellbeing Initiative for the Nation (WIN) via a public-private partnership for national prosperity to collaborate, coordinate and guide global organizational health innovation strategies enabling company-wide profits and competitive advantage, workforce effectiveness and community success. </p> <p><strong>Optimal healing environments:</strong> MI approach to transforming health and performance improvement innovation, achieving optimal healthy workplace realization and advancing healing as important as curing.</p> <p class="p1"><span class="s1"><strong>Living well invisible drivers of work-life health and economic wellbeing measurement:</strong> MI approach relates to commitment to be personally responsible, self-reliant and accountable to achieve better living and “Vulnerability Index” reporting which measures the balance of a population's or individual's mix of “unmentionables” — life-context conditions like financial stress or caring for an aging parent — and their ability to cope with these conditions.</span><span class="s2"> </span></p> <p><strong>Healthy life expectancy:</strong> MI approach relates to improving health-related quality of life and wellbeing for all individuals and takes account of the number of years that a person at a given age can expect to live in good health taking into account age-specific mortality, morbidity, and functional health status. In other words, dying with as much vitality as possible. <br /> <br /> <strong>Oncology care improvement:</strong> MI approach to advancing oncology care best practices and improve the service experience of cancer patients and their families. <br /> <br /> <strong>Home hospice and palliative care:</strong> MI approach to optimal healing environments in home hospice and palliative care to achieve breakthrough improvements in relieving human suffering, including pain, anxiety, dyspnea and helplessness, as well as finding meaning in suffering. <br /> <br /> <strong>Precision medicine and genomic innovations in health: </strong>MI approach to precision medicine and genomics-driven diagnosis, complex and rare chronic disease testing and treatment alignment capabilities.</p> <p class="p1"><span class="s1"><strong>Enabling technologies, scientific discovery and telemedicine capabilities:</strong> MI approach to accelerate best care at lower cost via primary care and complex care management solutions; value-focused comparative effectiveness outcomes research and life sciences innovations; and advances in mindful use of center of excellence telemedicine capabilities via remote consults for appropriate individual medical, behavioral and population health promotion problems instead of visiting emergency rooms, urgent care centers, and physicians’ offices.</span><span class="s2"> </span></p> <p><strong>Wearable computer technology and remote monitoring technologies:</strong> MI approach to wearable computer technologies and tracking devices and strategies to achieve meaningful behavior change. </p> | <p>Organizations worldwide see MI as essential to fortifying the fabric and culture of their enterprises. A commitment to MI, compelling ideas and the use of transformative MI is making mindful innovators constantly aware of their mindful intent to amass enterprise-wide economic well-being.</p> <p>Our work with the Samueli Institute’s Wellbeing Initiative for the Nation (WIN) — a national effort that convenes CEOs, C-Suite executives and health policy thought leaders from the private, public and military sectors — is working to expedite the transformation of our health care system to one that enhances community health and fosters a flourishing society. <br /> <br /> Samueli Institute’s vision and its WIN public-private partnership for national prosperity — includes a next level measuring social wellbeing collective impact approach — and advances a new system of currency that may seem like a fantasy, but it’s this type of radical thinking that’s needed in America to stop the progress of chronic disease and unhealthy living in its tracks.<strong><sup>1</sup><br /> <br /> </strong>Imagine that there was a Social Wellbeing Index (SWI). Alongside the Dow Jones stock market index and other reports of financial wellbeing, the state of social wellbeing would be announced each day, broadcast on television stations, streamed on the radio, and featured on financial market and Internet news sites.</p> <p>Imagine that this index was used as a metric for tracking the health of our society and could be reported for a city, state, county, country, community, company or for any organization. Imagine that policies and laws could be made to encourage the investment in increasing this social wellbeing index and that both tax incentives and profits were tied to it. Imagine that something of value such as a SWI currency, redeemable for physical or service resources or social appreciation and recognition, could be gained from those who boosted the SWI. The greater the contribution to the index the greater the value of the SWI currency, which could be accumulated, saved and spent. </p> <p>At its heart of the SWI would be a measure of the degree to which social engagement and bonding was being enhanced for the betterment of society as a whole. The value of the SWI currency could be weighted according to the degree to which collective wellbeing was arising from this social engagement. Activities such as investment in time would be considered a key resource and given value for the SWI. </p> <p>Surrounding this core SWI measure would be other more traditional measures of individual and collective flourishing in order to determine the impact on social wellbeing in the culture as a whole. These would likely be the parameters usually tracked such as morbidity and mortality, public health measures, health behaviors, education success, stress and happiness levels, disparities measures, environmental health, nutritional sustenance, levels of safety and violence, economic stress, and degrees of altruism and civic engagement.</p> <p>If simplified into a core index, reported daily and tied to both economic and social reward, the Social Wellbeing Index could become its own ongoing worldwide wellbeing driver and have multiple other uses, such as for the Wellbeing Initiative for the Nation (WIN) Challenge.</p> <p>In conclusion, we continue working with our colleagues to expedite the transformation of our health care system to one that enhances community health and fosters a flourishing society.</p> <p>1. <strong>Reference</strong><br /> <strong>Think Big for Social Wellbeing</strong><br /> Posted on December 4, 2014, by Wayne B Jonas, MD, President and CEO, Samueli Institute <br /> <a href="http://www.SamueliInstituteBlog.org">www.SamueliInstituteBlog.org</a> </p> | Les C. Meyer | View Edit Delete |
47 | <p>Nic Vu, GM and SVP for Direct-to-Consumer for Adidas North America, discusses how building relationships is today's number one sales strategy. Through this game changer interview, he discusses what customer-centricity really means in today’s data-enabled, hyper-competitive brand environment, from the perspective of one of the premier performers in the global retail landscape.</p> | It's global change: our entire company worldwide, as well as the North American team. We specifically set out three major strategies, which include speed, cities, and open sourcing, and it really has changed the behavior and frankly the entire game in which we play. Before, we would create products and push them out and try to sell to customers, in the traditional model. But as we started to open source and invite our consumers to help us within our journey in a new innovative way, which has created a shift in the ecosystem that has been applied throughout the entire organization.<br /><br />We're obviously very well known for Kanye West, and co-creating products with his fashion, style and expertise. By leveraging our globally recognized brand and expertise with his product and personal brand, we are going to market with a tailored product that leverages the best of both sides. We strategically made a choice that we would co-create with our key partners to deliver the best products to their consumers, and we are now leveraging that open source strategy with a variety of different key partners.<br /><br />We have opened up a product creation design house in Brooklyn called the Brooklyn Farm. We put our best designers there, and we are allowing customers – anybody who has a creative thought, anybody who wants to work with our brand – to walk in off the street and help us design products, give us new ideas; fresh thinking. We created an ecosystem internally with internal websites that allowed people to generate ideas, and their peers can vote it on their ideas. And that ultimately has driven thousands of ideas, including the very successful Avenue A initiative.<br /><br />With Avenue A, I have to give credit to Mark King, my boss, who's the CEO of North America. He is well known as a major innovator in the golf industry, and he has subsequently initiated and built this relentless innovation culture for Adidas North America in the past three years. In year one, we were all raising awareness, educating people on the process around innovation. In year two, we started to cultivate this ecosystem of openness. And now that we're in year three, you're seeing the net results organizationally, both within the North American marketplace but also on a global organizational level. At the same time, we launched the Innovation Academy, wherein we created an environment in which people can learn, get an education; effectively get an MBA in innovation.<br /><br />As the GM of Direct-to-Consumer for North America, I spend half of my time understanding consumer sentiment and listening to the ideas they have, and the other half of my time around merchandising and product.<br /><br />What's unique about Adidas Group is that we were born in sport, and we're sporting goods athletic apparel and footwear company. We can basically be an athlete’s entire wardrobe, on-court and on-pitch, or as soon as they get off: we're there to support them through their own style and fashion as well. And we're a brand that wants to co-create. | People need to be educated and aware that they have the ability to contribute within their own organization, and to try new things. You can't create an ecosystem organizationally that shuts that down. You need to allow votes on people’s ideas by their peers, not by their supervisors – so, their confidantes, if you will. And employees need to know that it is safe to fail, and they need to fail fast and frequently. Unfortunately, I would say the majority of organizations still penalize mistakes, despite the knowledge that innovation requires an ability to fail. <br /><br />Really, the impediment that I see within the industry is that, too often, people feel they have to have a 100% plan, ready-to-go, and that it has to be successful. Today, we have an innovation board within every single one of our brick-and-mortar stores and we invite not only our consumers to put ideas on there but we invite our own team members, our internal consumers, to give us ideas, and those ideas then are surfaced all the way up the "chain of command." Then, ultimately we create games that feature competition and collaborations, and then all of a sudden people feel like, "Wow. I'm a one-week-old employee internal to Adidas, and I submitted my idea and two months later, the top guy in the organization is reviewing my ideas! How cool is that?" | What I would say is we have to create a incentivized change-management process to induce innovation. I think you can't introduce innovation as a top-down mandate or even execute it in that form. I think you have to win hearts and minds within the organization, and you have to start by developing a budget or resources that are dedicated to it. <br /><br /> So our newsletter four or five years ago was driven by functional heads and it was kind of like this laborious mandate from the top – me, in this case – where every function gave and updated them, and we’d we post a static document and that would go out to the organization. We thought that was communication. Today, in contrast, the employees within each function, regardless of level, drive what content they want to express to the organization. And it's this living, breathing document that goes out every week now. | <p>Mobile technology will remain key – almost every consumer today has some level of smartphone in their hand, and the information that they can get via Google or other search engines is so quick and so fast that brands like us, Adidas Group, will need to make sure that we are there to help cultivate that experience for the consumer and answer those questions, or even anticipate those questions. So I would say mobile technology and all the apps that can be developed to connect the consumer's experience, is really the key in the future.</p> <p>We already have virtual reality in our stores today, which help educate and create a great experience for our consumers. So when we opened up our world flagship on Fifth Avenue, we had virtual reality in there wherein NBA superstar James Harden in a VR space was giving them – the consumers – the experience of a lifetime, because it felt like you were actually speaking with James Harden.</p> <p>Meanwhile, we’re leveraging technologies from 3D printing to AI, and I think the key is to make sure that our digital and social ecosystem remains connected for the end-user experience. We're starting to implement local market manufacturing wherein we can bring speed of product-to-market faster. And we're talking months and weeks, we're not talking years and months.</p> | <p>My personal favorites include Tesla and also Faraday Future, that just came out with an innovation where you can basically sit in the car, and it will self-drive, self-park, and you can talk on your social platforms. And ultimately what I learned from the car industry – in this case, electric car companies – is that they're chasing the very same thing we are: a connected experience for the consumer in which they can interact with your brand, any which way they like, and for us to be prepared to be able to interact with them any which way they like: digital communities, hubs, and apps.</p> | Nicholas Vu | View Edit Delete |
54 | <p>“Innovation has become the fundamental aspect of all development; without it there can be no progress in the Property Industry,” says Leslie Fivaz, CFO for ALW Properties in Johannesburg, South Africa. Johannesburg is South Africa’s economic powerhouse and one of the fastest growing emerging market cities in the world.</p> | <p>ALW Properties is a small yet dynamic and innovative property management and development company with its head office based in Norwood, Johannesburg, South Africa. We are a team driven by a passion for environmental conscientiousness in the design and development of commercial office properties.</p> <p>Our latest flagship development, Atholl Towers, in Sandton Johannesburg is an environmentally innovative office building, offering world-class AAA-rated, 5 Star green office space for commercial property letting. Up to 50 percent savings are offered on energy and water costs, which is accomplished through:</p> <ul> <li>Recycled heating</li> <li>Energy efficient lighting and motion sensors</li> <li>Water saving fixtures and rain and ground water harvesting systems</li> <li>Waste recycling facilities</li> <li>Low volatile organic compound paints, adhesives and carpets</li> <li>Recycled and locally sourced building materials</li> <li>Energy efficient “REGEN” elevator facilities</li> <li>Cyclist facilities</li> </ul> <p>We are determined to be and to remain responsive to a rapidly changing industry dynamic.</p> | <p>South Africa’s commercial property market is facing many challenges. A number of factors are causing both local and international buyers to put off purchases until they have a clearer picture of where the country is headed. Factors include: Rand weakness, high inflation, weakening metal prices, ongoing violent strike action, a rising trade deficit, continuing uncertainty regarding property rights and land reform, high levels of crime, weak service delivery, and political in-fighting. Increasing input costs such as labour, electricity, water, property rates and taxes and raw materials, as well as skills shortages, and credit downgrades are further undermining South Africa’s social fabric and spooking investors.</p> Yet it is not all doom and gloom. Confidence in the real estate sector has improved; there are suburbs across South Africa which are performing well, and property values are improving. The Property Industry is an extremely innovative industry full of people with innovative ideas and entrepreneurial spirit who continually find ways to counter the challenges. Encouragingly, industry observers continue to state that there are good reasons to remain confident in South African properties as an asset class. | <p>There is no doubt that within the next few years the Real Estate Industry is likely to look very different from the way it does today. There is recognition that patterns of demand are changing and the most forward-thinking companies and people in the industry are creating products that cater to the changes. Companies like WeWork and Regus are taking service offices to the next level by building sophisticated collaborative workspaces for entrepreneurs and professionals. They understand that the shift toward online business has not downgraded the importance of social interaction, but that there is massive demand among companies and individuals for environments in which they can talk to each other, generate ideas, and innovate.</p> <p>Innovation is enabling the property industry to make the most of one of its most important characteristics: that it is a people industry. New technology and disruption are not leading to a depersonalisation of Real Estate; quite the opposite.</p> <p>Steve Jobs says that “Innovation distinguishes between a leader and a follower.”</p> <p>In Property, change and innovation are a given. In fact, they are key imperatives for any successful Real Estate company seeking to stay ahead in a rapidly evolving and consumer-driven marketplace.</p> | <p>New technologies are having a surprising amount of impact on the property industry.</p> <p>For commercial property owners, sustainability is more than a trend – it’s a glimpse into the future. Sustainability is one of the biggest drivers of innovation in today’s economy – and the commercial property sector is no exception. As the demand for green-friendly office spaces increases daily, particularly with millennials, building owners are embracing sustainable designs that lower monthly costs and reduce the building’s carbon footprint.</p> <p>With cities around the world growing fast as development spreads to almost every corner of the globe, resources are scarcer than ever. Building materials, water and electricity will need to be produced, consumed and recycled efficiently to support the planet’s growing population. The recent drought in South Africa, which brought water rationing in its wake, as well as the decade-long Eskom crisis with its annual electricity tariff increases, have inspired property owners and tenants to take action.</p> <p>Commercial buildings that feature independent power generation (through solar energy systems) and smart water recycling, are becoming increasingly popular with tenants – especially the younger generation of startup owners. Lower monthly utility bills are good for every company’s bottom line. At the same time, environmental stewardship is an essential part of prominent brands, from SMEs to large corporates.</p> <p>While Green Star ratings are typically given to new developments, it’s still possible for older buildings to shed their large carbon footprints and remain desirable. Many developers, including ourselves, are actively engaged with this process:</p> <ul> <li>Solar power systems and geysers can be retrofitted to some older buildings, as long as the building’s structure can accommodate them safely.</li> <li>Energy-efficient lighting, air conditioning and office equipment can be fitted to almost all older buildings, reducing monthly consumption and utility bills.</li> <li>Some older buildings in up-and-coming areas can be renovated and re-purposed using green designs, giving them a new lease on life.</li> </ul> <p>With years of load-shedding, double-digit increases in electricity prices and now a catastrophic drought, South Africans have come to appreciate green features the hard way. The demand for green features will continue to increase as the high cost of utilities, along with electricity and water supply issues, force this to become a key factor in buying decisions.</p> <p>Technology is definitely disrupting Real Estate economics as the demand for eco-efficient buildings rises. Technology is forcing developers to relook at the way they construct buildings. Today, buildings must be low-energy, sustainable, and able to respond to future changes in the climate, technology and regulation. Buildings of the future will all be “green.” The Global Real Estate Sustainability Benchmark, an industry-driven organisation, is committed to assessing the sustainability performance of Real Estate portfolios worldwide; and Europe’s Energy Directive is driving for near-to-zero energy buildings by 2020.</p> | <p>In addition to the call for green office innovation, collaborative workplace organizations such as WeWork and Regus are also knocking down the literal and figurative “walls” and changing commercial real estate dynamics. These flexible, shared office spaces provide various options for companies that either lack the capital or want to divest themselves of the real estate, furniture and services that were previously non-negotiable. These shared spaces are ideal for hosting meetings, and can also act as both on-demand and long-term space for satellite employees, mobile workers, and independent professionals.</p> <p>Many large corporates are realizing that they can dramatically reduce the office space required, not because of a fall-off in business, but rather as a result of technology innovation and changing human behavior, which have reduced the amount of required office space. Companies and employees are able to do more with less space – the very heart of innovation. Spurring this dynamic is the rapid growth in mobility technology, smartphones, tablets, laptops, Wi-Fi and exceptionally fast Internet connections, and cloud-based resources. These technologies have obliterated the need for file cabinets and server rooms – further reducing the need for dedicated IT space. The speed at which technology has evolved means that not only are business people able to take their work around the city as they hop from meeting to meeting, or home in the evening, but they are also able to carry out these tasks and remain cost-effectively and efficiently connected to their team and management.</p> | Leslie Fivaz | View Edit Delete |
68 | <p>Tanya Accone’s career has focused on helping international public and private sector organizations understand how to amplify their impact through the convergence of people, technology and innovation. She is committed to applying innovation for social impact and as a public good, especially with and for young people.</p> <p> </p> | <p>Life-saving innovation for children has always been part of UNICEF’s DNA. We’ve been changing the game in the international development and humanitarian sectors by innovating at scale for decades, introducing solutions like oral rehydration salts in 1975, considered one of the most significant lifesaving innovations of the 20th century, saving hundreds of millions of children's lives.</p> <p>Since 2015, UNICEF explicitly pursued innovation within a corporate strategy. We established the sector’s first Global Innovation Centre, launched the first Venture Fund, and introduced the first Crypto Fund. This has enabled us to push boundaries with frontier technologies such as AI, blockchain, drones, and machine learning, and develop a track record of effectively applying innovation for problem solving at scale.</p> <p>Building beyond this foundation, the Innovation Nodes work I lead focuses on possibility-led innovation to unlock the potential of previously unknown areas of innovation for children in underserved communities. Through a process of systematic discovery and initial knowledge-based derisking, Nodes allow us to investigate "known unknowns" and "unknown unknowns" in fields like precision health, next generation renewable energy, and biotechnology, as well as practices like emerging business models in social innovation. This transdisciplinary approach allows us to engage and equally inspire others to act along the new frontiers that can contribute to transformative change for children worldwide.</p> | <p>Every resource is precious in the development and humanitarian sectors, so it is more important than ever that innovation demonstrably delivers value to our core business. Measuring what truly matters and communicating impact effectively are therefore also more vital than ever.</p> <p>Urgent and immediate needs take priority and the challenges facing children tend to overwhelm the available resources. It’s not surprising that time poverty Is another challenge, and its implications on an operating environment that can nurture testing, learning and iteration. Innovation and the time to engage in are fundamental parts of core work where the concrete results are evident.</p> These factors place pressure on time horizons for innovation to evolve and mature, and especially to deliver at scale. “At scale” has truly global meaning for an organization like UNICEF, which works in more than 160 countries and territories. Ground-breaking innovations will struggle to emerge or deliver profound social impact for children if we’re unsuccessful in addressing these impediments | <p>Innovation is an explicit part of UNICEF's organizational strategy, competency framework and accountability and governance structures. It is also an implicit part of organizational culture -- not being the preserve of the few, but the business of all, with relevance and value across every function and level of the organisation.</p> <p>Opportunities to innovate to deliver results are integrated in so many aspects -- from orientation and professional development opportunities, to incentivized innovation challenges for intrapreneurs, and structured programmes to support business units in integrating innovation into their strategies and plans</p> <p>We also recognize that our innovation culture drives not only our organisational success but also influences broader global ecosystems of which we are a part.</p> | <p>Our Innovation Nodes work is entirely future-focused, looking at a 3-10 year time horizon. There are a number of possibility spaces that we are excited about, but the two I’m might be surprising if you were expecting me be typical and choose among emerging technologies.</p> <p>One is unlocking greater value from existing innovation investments than is currently being realized by reducing the gap in science-policy-society interfaces. This is about unlocking new markets, novel applications and use cases. Currently, researchers may not fully grasp the potential applications of their technologies in unfamiliar contexts. Policymakers may lack access to expertise on emerging technologies and be less effective in their policies, incentives and regulation. Development practitioners may struggle to explore unknown domains of emerging science and connect these to the challenges and contexts they know well. Young people may not be meaningfully engaged in exploring the implications of science, technology and innovation on their lives. We’re working on closing these gaps.</p> <p>The other aspect is new and emerging business models for innovation for sustainable development. We are particularly interested in financially sustainable models that can continuously deliver social impact without depending on extended charitable funding. Understanding and applying these models to create and capture value so that that transformative impact for children can be sustained would be significant in our industry.</p> | <p>The terms interdisciplinary and multidisciplinary are frequently used, but it is transdisciplinary approaches that evidence shows are particularly well-suited to addressing complexity and complex sustainability challenges. No matter what industry you’re in, the world is increasingly complex and so this is a particularly useful strategic approach.</p> <p>By “transdisciplinary,” we mean taking a purposeful approach to drive sustainability by working across different fields, collaborating, integrating, and jointly creating knowledge in a diverse and multi-directional way. Not without its challenges, a transdisciplinary approach helps with the sweet spot of investigating how emerging technologies can meet future challenges effectively while considering the unique and changing variables of different communities, markets and contexts.</p> | Tanya Accone | View Edit Delete |
51 | <p>Nancy Selph is the COO for Innovation and Data Governance at Deutsche Bank in New York. She manages the central team that supports the innovation function globally through labs in locations around the world. The labs collaborate with a global focus and share three principal goals: to help the bank evaluate and adopt emerging technologies, to develop a culture of innovation, and to contribute to the bank's digital strategy.</p> <p>The launch of the Deutsche Bank Innovation Lab New York in March marked the fourth lab in the iconic bank’s global initiative to create an ecosystem for Fintech innovation. Representing an integral component of the Frankfurt-based bank’s broader, growth-oriented digital strategy of enhancing products and service to clients, the labs explore and evaluate scores of start-ups and emerging technologies to unlock business benefits such as better risk management, tighter controls and enhanced client experience.</p> <p>The innovation labs were the brainchild of Kim Hammonds, Member of the Management Board and Group Chief Operating Officer, three years ago after she joined Deutsche Bank from Boeing. The labs are located near Deutsche Bank’s business and technology centers and embedded within top innovation ecosystems. The core function of labs teams are as innovation specialists representing the bank’s interests. They seek to understand the demand challenges of internal partners within the bank and then look to globally vet new and emerging technologies. They then explore if there is a match and conduct experimentation to see if the solution can work inside the bank.</p> <p>Among the technologies Deutsche Bank has adopted via the labs is a web-based financial risk analysis tool. The new service alerts credit risk officers so they can actively manage client ratings, thereby supporting better business decisions and liquidity for clients. Another tool helps analyze surveillance data harvested from multiple sources bank-wide.</p> <p>The labs help transform the bank through adopting emerging technologies and by working on the more complex process and technology themes the bank faces. Digital retail banking, Distributed Ledger and the future of international payments are some of the larger challenges they are exploring.</p> <p>“Some people believe innovation has to be instant and revolutionary. But all eureka moments come from years of hard work and evolutionary change. Global banks will evolve to where we want to be in this same way. We will utilize new technologies to solve challenges that will be rolled out incrementally across the bank.”</p> <p>Having worked for a Fintech pioneer in the early 1990s, Selph has the benefit of having both witnessed the impacts of several game-changing innovation generations in the finance sector, and of understanding changing expectations in an age of digitally empowered customers. In her career, she has held key operations and executive roles with five investment banks.</p> <p>“I joined a small company called Teknekron Software Systems in 1990, which revolutionized the way trading floors operated,” she recalls. “Teknekron developed the middleware which distributed digitized stock market data to trading floors. The company became TIBCO in 1994. That technology in the early ‘90s was game-changing. We knew more about technology than the people using the systems, which is typically not the case today. This is because most people working at Deutsche Bank, or any other enterprise, tend to have access to faster and cheaper consumer products than we can provide inside of the bank. Banks have merged and they have been acquired, and they have different systems for varied purposes. It is very challenging to fully integrate those systems. That is one of the challenges the bank has when adopting new technologies.”</p> | <p>The idea of the lab presence itself is about giving people a space to come and think differently and engage with us. We run demand sessions with our business teams to get to the root cause of their challenges and then find solutions to meet those needs. It is the applied adoption of new technologies with a return on investment by decreasing risk, simplifying the environment or increasing revenue. By the time we have introduced the technology into the bank, we are confident it will make a difference.</p> | <p>All large banks have challenges. The size, credentials and history of the bank reflects the complexity of the underlying systems and processes that need to be transformed. The labs have been created specifically to tackle these challenges on all fronts. Some are easier than others to solve, but the needs of our business and technology partners within the bank are always our focus. Something that helps overcome impediments is how well the labs have been embraced by the bank. There is huge support and engagement at the executive level to make Deutsche Bank great from a technology perspective. </p> | Innovation is one of the pillars of Deutsche Bank and at the cornerstone of everything the bank is doing. Our CEO, John Cryan, talks about the innovation labs often in his public speeches as a means to enable us to service our clients in a better fashion. It is a top-down imperative with a bottom-up implementation, making the lab accessible to everybody. The labs are for all Deutsche Bank employees. People come in and see the bank has invested in working differently. Everybody who has walked through our doors or spoken to one of us feels the excitement and takes it back to their desks. | <p>Over the next few years, technologies such as artificial intelligence, robotics, machine learning, and analytics will transform the banking industry. What these new technologies can do with analyzing and transforming vast amount of data is amazing.</p> | <p>I love how Panera Bread leveraged technology to change the ordering experience. The wait was long and the orders were not always right. They transformed their ordering process through in-store kiosks and a mobile app, so now it takes a minute instead of eight to order your food there. I’m always looking for ways to save time in my life, so this resonates with me.</p> | Nancy Selph | View Edit Delete |
13 | <p>Dr. Thomas J. Buckholtz, Ph.D., has served in many executive roles including Chief Information Officer for both corporate and governmental organizations. He has made key contributions to the business, technology, and governmental innovations. He has served as an advisor to many key startups, and works as a University Extension Professor guiding workshops on innovation.</p> | <p>Let people pursue their natural curiosity and good intensions. Nudge a person's curiosity, intensions, and pursuit toward outcomes that benefit the organization, its customers and other external constituencies, as well as the person's colleagues and self. Help people overcome shyness about trying to make a difference.</p> | <p>One impediment is a lack of broad-based, impactful thinking and action - both by individuals and at a societal level. This extends to enterprises, governments, suppliers of learning, and other components of society. People miss or misjudge key issues, opportunities, and problems. People overly focus on "yes or no?" regarding one possibility rather than on "to what extent?" regarding several possibilities. Problems outweigh opportunities. Busyness trumps business.</p> | <p>Organizations have opportunities to use various practices that people correlate with the word "innovation." I hope organizations look for, adopt, and adapt suitable innovation practices. I hope organizations avoid inappropriately immature or ossifying practices.</p> | <p>Positive change may occur based on people first focusing on useful opportunities, objectives, and endeavors and second involving appropriate thinking and useful resources - beyond and including technology. Some pivotal technology may correlate with helping people think more effectively. Others may correlate with people's choices of what to measure, how to measure, and what to do based on measurements. Still others may correlate with people's abilities to determine the extent to which people (and systems) rely on supposed information.</p> | <p>People who have "free time" and use it wisely. Organizations that foster creativity and the converting of creativity into innovation. Organizations that have adequately broad views of innovation and aspects of business, governance, and society for which innovation can be beneficial. Organizations that help people avoid undue busyness. Organizations that build society, customers, business practices, partners, suppliers, and relationships - along with lines of products and services. Organizations that reuse and teach - not just use - beneficial practices, processes, knowledge, and data.</p> | Thomas Buckholtz | View Edit Delete |
40 | Schell is a Member of the Board of Directors of the German speaking SAP user group (DSAG), specializing in business processes and digital transformation. Beside this, he also runs the bi-yearly Globalization Symposium for international user communities. | <p>Others try to be on the political side; some try to be advisors, but what we really offer is the practice. What we can deliver on is the knowledge and experience of 3000 company members – both large and also midsized.</p> <p>We ask – are you prepared for 24/7? Are you prepared for changing from products to services? Are you really cyber-ready? I am talking a lot about IoT – we need to change in terms of its promise. How do we motivate this group of people who are doing IT business processes to adopt new business models to reflect these capabilities?</p> <p>Many leading companies are evaluating the importance of digitization, and new business models, and I see a responsibility with vendors such as SAP to inform and accompany them in their transition to a digital future. I want to ensure people are aware of what they need to think about – to get from digital to practice. We don’t know everything, but we do know there will be huge change. Companies will really be out of the game if they don’t change their business models. There are companies which do sensoric very well, but they don’t understand the business models, and there are those with good business models, but no clue about sensoric. We must bring those together.</p> <p>Business model development and innovation needs to have an iterative approach, not a sequential process. I think IoT will change asset-rich industries in a positive way – you’ll know the usage and change in your assets. You can add sensoric to 10 year-old assets and derive a longer lifecycle. The question is how you change your business model around it.</p> <p>In terms of the mix of skills sets companies will need, what we see going on in the European ecosystem, for example – universities; schools – is that there is a lot of momentum to embrace a positive attitude about change. The question is only how far to take this attack mode. It is difficult to understand what’s going on regarding China and India – they are so huge. Everyone in the west knew Amazon; not many knew Alibaba, and yet Alibaba is much bigger than Amazon ever will get.</p> <p>In Germany and Switzerland, and really Europe in general, there is nothing we can do anymore in terms of extracting materials from the ground. All we can provide is knowledge. In recent decades, our exports have been dominated by engineering; by producing the best machines. But knowledge is the future. Nevertheless, too many executives tend not to take the opportunity, and wait for others, which is a pitfall. More acting than (worrying) is the right thing to do.</p> <p>Some organizations still believe they can run with isolated strategies – with marketing/sales and production/purchasing in isolation. I firmly believe you can no longer do this alone. Companies need to have a clear glide path of where they want to go; they need clear buy-in that transformation is both top-down and bottom-up. What I think companies normally don’t do, and what they should do, is to really attack markets. Uber attacked. Do you really believe that if Uber had entered the market in the normal, slow way, analyzing and checking everything – they would have succeeded? They did not wait. Many other companies should also move away from a risk-awareness position to attack mode.</p> <p>They need to ask: How can I attack other areas where I am strong? Many companies believe they are world-leading, and then some company in China, or Korea, or India has already overhauled them from an income perspective.</p> <p>Executives must ask: are we ready for the shared economy? Are we truly cyber-ready? A lot of people talk about data analysis and big data, but at the end of the day its not about the big data – its about finding a pattern from the data which creates a new business model.</p> <p>Too often, this is not what companies do. We analyze to death; we prepare for a presentation, and we wait for someone to make a decision. And when the CEO makes the decision, they are not ready for that decision because they are too large. The way of working together needs to change.</p> | <p>Companies need to move away from risk aversion and towards attacking markets. Also, companies need to involve the youth and their perspectives into the discussion. There are cultural barriers. We cannot truly go into the digital world in healthcare – which I would like, certainly – if we don’t change the rules of engagement. We will never get 100% security, but we never had 100% security anyway.</p> <p>I see that some people are overloaded with what’s going on – take the most talented marketing people: they need to understand that CRM will completely change everything in that field. So it is most important that people stay open.</p> <p>Will people lose their jobs? Maybe – but there will also be new jobs, and there will be a bridge between old skills sets and the new skill sets.</p> | <p>Within our organization, the culture of innovation runs very deep – because we have been doing this for the past 30 years; we do business processes; we do transition management. This is our advantage – we are practiced at this.</p> <p>There is real excitement about how we can use assets in a different way. There is a passion about the business value being brought by digitalized business models. About smart cities and automated driving, and many others.</p> <p>Open minds are the key. Imagine you are at door of a supermarket: it will already recover your data from your smartphone, knowing your behavior and your previous buying patterns – and you will be guided. This will happen much faster than we expect – and the next generation already expects it, and does not fear these kinds of changes.</p> <p>When we order from Amazon – do we wonder about security and reliability? No, we already know they are reliable. So trust in new technologies does not take decades, or even years.</p> | <p>Real Time. It will be a real-time world. You will get information in real time and make decisions in real time, because you have the capabilities and skills, and because consumers will expect it. You will be in front of a shop and they will know what you want.</p> <p>Business models will change – often, toward technology-enabled services. We had analytics before – just not this quickly. Now you have all this discussion about data, but what about business models? That is the next discussion.</p> | <p>What I find really cool is the potential in healthcare devices to actually do what we saw in Star Trek in the ‘70s. Remember that noise – <em>doo-da-doo</em> – when they would go over someone’s body with a handheld device to detect a defect? I think its great that that will happen. When I go to a doctor, I don’t want to answer questions about my age; what I’ve been eating and how much I have been exercising – I want them to know that already.</p> <p>As a consumer, I love to be recognized. I don’t worry about old notions of privacy, when there are such amazing benefits.</p> | Otto Schell | View Edit Delete |
42 | <p>Sebastian Herzog constantly moves between corporate culture and startup spirit. Herzog has more than 10 years of work experience within Lufthansa, including being the former executive assistant to the CEO of Lufthansa Group, while also founding his own fashion ecommerce startup OfficePunk.</p> <p>In 2014, Herzog finally bridged both worlds by becoming a true corporate entrepreneur, initiating and founding the Lufthansa Innovation Hub jointly with internal and external top talents as a separate legal entity. Asked about the focus fields of the Lufthansa Innovation Hub, Herzog explains that he is not a believer in focusing on specific trends or technologies. “If you really want to change things, you have to focus on a specific customer,” he says. “Innovation starts with empathy and only with understanding the needs of a customer, one will be able to derive real improvements and innovations. In that sense, our only focus is the traveler and his or her needs. In an exaggerated way, I would say, 'customer interest beats company interest.'”</p> <p>One very concrete example is the pain of travelers having to check-in for their flights manually. Instead of supporting the Lufthansa core business with state of the art self-check in solutions, the Lufthansa Innovation Hub built www.airlinecheckins.com-- an industry-wide solution that allows travelers to be checked automatically for more than 100 airlines based on their preferences. Herzog says, “While it might sound contra-intuitive in the beginning, we are now learning a lot about the traveler behavior when they use other airlines than Lufthansa. And of course, this knowledge helps Lufthansa as well.”</p> <p>Herzog is also advising and consulting other corporates on the topics of digital transformation and corporate entrepreneurship. He adds, “Regardless of the industry I am working for, they all struggle on how to cope with the incredible speed and rate of change out there. That is why corporations such as Lufthansa can fully exploit the full potential of an Innovation Hub by setting it up as a second operating system of the corporate that runs with a different speed, based on different talents and framed with a different set of budgeting rules. If you then develop the right links to the mothership – Innovation Hubs can become a major driver of commercial and strategic impact.”</p> | <p>Three main differentiating factors between the Lufthansa Innovation Hub and other corporate innovation activities are:</p> <p>1. Talent: Instead of “just relocating” existing line-managers to a fancy tech-location – we managed the challenge to get significant amount of entrepreneurial talent on board. Currently 80% of the Lufthansa Innovation Hub consists of people that have not worked for Lufthansa before.</p> <p>2. Tool set: Instead of being a pure incubator, accelerator, technology lab, or corporate VC, we are deeply linked with the Lufthansa Corporate Strategy and pursue whatever innovation setup that is suited to a specific challenge.</p> <p>3. Test-driven culture: Instead of writing five-year plans on whiteboards, we try to get instant market feedback, regardless if we are building prototypes and products or developing broader strategies.</p> <p>This unique combination really allows us to support and drive the digital transformation within Lufthansa by supporting the existing business with startup partnerships and new products, (“better business”) as well as pursuing topics out of current business boundaries (“new business”).</p> | <p>There are three levels one has to consider:</p> <p>First – The Innovation Team. In general, you often see innovation teams pursuing something they are passionate about but that customers do not really care about, or teams unwilling to kill off ideas that aren’t working. Within the Lufthansa Innovation Hub we try to rapidly kill our projects if they do not meet our initial hypotheses.</p> <p>Second – The Industry. You always have to consider the industry you are working in. The aviation industry for example highly relies on safety—we build systems to be backed up by systems to be backed up by systems. You don’t want us to do fail-fast. Fail early, when it comes to building or running aircraft or engines. Even within development, safety is drilled down with the manufacturers and airlines at a level only otherwise seen in nuclear energy. This is understandable, but it has implications for innovation potential. </p> <p>Third – The Corporate. Corporates in general have a lot of things to lose – for them it is so hard to innovate. Start-ups can fail fast, because you have no customers to lose, no brand to lose, no package to lose. At big corporates, you have everything to lose, and that keeps you from pushing the boundaries. That is where corporates have to find their own platforms where they can be explorative, and that is where we come in.</p> | <p>The history of the Lufthansa Innovation Hub is quite a unique one. In May 2014, a small group of internal Lufthansa colleagues convinced the Lufthansa Board about the relevance of travel tech startups as driver of innovation in our industry. That time, we were looking for the commitment to acknowledge those startups as a very relevant stakeholder for Lufthansa. Based on these very early and initial findings, I personally had the chance to set up a team of three internal and three external colleagues to move to Berlin for three months and try to figure out what is needed and what is suitable for Lufthansa.</p> <p>The six of us spent the time in a shared apartment in Berlin: meeting various startups, corporate entrepreneurs, building the first prototypes, and finally convincing Lufthansa to move this initiative to its next level with founding the Lufthansa Innovation Hub as a separate legal entity in January 2015. While we were equipped with an initial budget for one year, Lufthansa just recently increased their commitment with a three and a half-year funding and more resources focusing on commercial and strategic impact. To summarize, these intense 30 months since the days within the joint apartment one can say that the Lufthansa Innovation Hub moved from an internal experiment towards a fully integrated part of the digital transformation of Lufthansa. </p> | <p>Speaking of technologies, we live in a world with some very interesting technologies all with the ability to change major parts of our daily lives. For example, there is voice recognition, artificial intelligence, virtual and augmented reality, blockchain. One could name every fancy buzzword here, but the question I am really asking is, what´s the impact on business models and customer interaction?</p> <p>Take travel booking as an example. As the consumer, you are confronted with numerous choices from airline websites, meta-searches and online travel agencies. Whether you are on a leisure or business trip, you could spend endless hours comparing offers and trying to find the best deal. Even if you found what you are looking for, it is not convenient to book. You are forced to type in passport credentials and personal data over and over again. This high degree of inconvenience is a perfect open door when it comes to disruption.</p> <p>We see a change in the interface: travelers are very eager to use their existing communication channels such Email, Whatsapp, or Facebook, and rather deal with one travel-focused concierge service than with a broad set of various travel providers, each with his own communication. That observation and anticipation of customer behavior then led to the launch of www.hellomissioncontrol.com – a travel concierge built by the Lufthansa Innovation Hub.</p> <p>Talking about the future, will we still have airline booking websites around in five years? I don’t know. I literally cannot imagine people who still enter an airline website domain and manually type in where they want to go. I just don’t see it because there are so many trends towards much more convenient frontends with massive data-driven backend that actually can perform the task you want them to do.</p> | <p>I am impressed by innovation strategies that are able to adapt according to what is happening out there. Just as if you would be building a prototype: you build, you learn, you measure, you build again. Considering the uncertainty and speed we are living in, I am convinced that five year plans are not worth the paper they are written on. Strategy has to be as agile as product development.</p> | Sebastian Herzog | View Edit Delete |
44 | <p>As CEO of Modria—the pioneering Online Dispute Resolution (ODR) platform—Scott Carr provides businesses and government agencies globally with a transformational tool for fast and fair resolutions, customer service efficiency, and even brand loyalty. The model provides a unique pathway to justice and institutional trust for global consumers, and is rapidly growing beyond transactional disputes. After 15 years of development and technological enablement, ODR itself has surged beyond its initial brief of legal cost savings and eCommerce complaint solutions to become a game-changing catalyst for brand building, civil justice access, and marketing intelligence. Carr says that between one and three percent of all transactions go wrong each year, and that clogged Small Claims courts are unable to cope with either the volume or the cross-border jurisdictional nature of online disputes, while consumers have neither the time nor the resources to pursue them through traditional channels.</p> | <p>We have created an online platform for online dispute resolution (ODR) that can resolve disputes of all kinds from eCommerce to relational disputes, and we are available to companies, government agencies, and ADR organizations, to deliver fast and fair resolutions across these categories. We have done a couple of things that I think are unique. One is that we built a configurable platform that has all the modules of dispute resolution that can be snapped together in different ways to solve particular needs. No one else has built a platform like this. We think of online dispute resolution as a business process or a civil justice process, and it is kind of like how salesforce.com created the CRM category—we have not seen anyone else do that for DR; it is like this underserved business process. Secondly, we built a team with a unique composition of experts, mediators, arbitrators, and technologists. Some are experts in building technologies in start-up environments, some have done international Mediation and Arbitration work, and some are just experts in ODR. No one else has assembled a combination of talents like this. We design the resolution journey, and in that way, we bring people together.</p> <p>The platform is a click away on websites where you are transacting your business: an online marketplace, or a merchant’s website, and in some jurisdictions on an ombudsman site. We are increasingly working with ombuds organizations, especially in European jurisdictions. Europe has started to pass laws that require online businesses to provide online dispute resolution. In addition, we have innovated a SaaS-based business model focused on the value of making our customers’ customers happy. We deliver our platform as a service subscription, and the price depends on the number of disputes the customer runs through the platform. The more disputes you have, and the less you pay per dispute. We deliver value by making it more efficient for you to resolve a dispute—including resolving it through automate software—and making your customer happier.</p> <p>ODR is changing the traditional customer service role: Modria is reducing the number of customer contacts in the call center for a problem transaction, and freeing the agents up to do more account management, up-selling and outreach into the customer base. In customer service, for a typical US company, if I pick the phone up and call, and they answer my call and try get me a basic outcome, it is going to cost the company about 12 dollars for labor, technology, telecommunications, and overhead. That is before they pay me any compensation. Our system brings that cost down from 12 dollars to four dollars and eighty cents. We do that through the reduced contacts because we are resolving issues in software; for marketplaces, we resolve issues between buyers and sellers without CS having to get in the middle. We typically serve the space that you might classically think of as Small Claims. Our disputes usually involve 25,000 dollars or less, but resolutions are tailored and often involve solutions beyond dollars that might satisfy the customer. With an eCommerce site, the value is often 25 dollars to 150 dollars, but we also, for example, resolve insurance disputes. We have a large caseload in the state of New York, and with New York No Fault insurance those claims are higher because they are related to medical bills, but they are still not millions of dollars.</p> <p>We have spent a lot of time innovating the user experience, and trying to package up what we call resolution flows. What we see is that there are patterns of commerce and the disputes that arise from them. A typical problem we see from customers is that they didn’t get their item. Or they did get their item, but it was not the way it was described on the website. We innovate by pre-building the resolution process, so we give our customers a jump-start when it comes to deploying online dispute resolution. They do not have to start from a blank piece of paper. We synthesize decades of experience in this. We are working with major airline companies on delayed flight compensation, and so far it is working well. If your flight was six hours late, and you missed a meeting, how do you build that resolution flow and make it available to multiple jurisdictions?</p> <p>Most disputes are resolved in the diagnosis and negotiation phases, and then there is also a neutral party in the mediation module. Beyond that, there is the arbitration pathway that also sees resolution in a short time, relative to the courts. We are now in a regulated process; decisions are typically given by retired judges who are arbitrators. All their decisions are published online, and are searchable. In a lot of ways, it looks like an online court, and is legally binding—a process the injured party opts into.</p> | <p>I think there are two things that hold back innovation. One is that people look at disputes as just customer service—to answer the phone and quickly dispatch an answer—as opposed to realizing that when a transaction goes wrong, companies or government agencies need to provide a resolution process that’s not just giving them a return. We have a bit of resistance, and you need a change in people’s thinking to realize that what customers want are resolutions, not talking to customer service agents. When our customers shift our thinking in that simple way, we can suddenly use technology to deliver resolutions with benefits for both parties.</p> <p>Also, customer service is usually seen as a cost center. When we try to bring innovation here, customer service teams see how this can transform the customer journey, and they can see how the economics are aligned. Our service often reduces the number of contacts into the customer service center, because people just work it out, or our software provides a resolution for the customer without a customer agent having to interact. Part of the enterprise challenge is to get companies to realize this is a sales and marketing benefit. This goes directly to your brand, to your customer retention, and it goes to Net Promoter Score (NPS) or customer referral. You must think broadly, and that can be a challenge to adoption.</p> | <p>We always have a bit of R&D running, even though we are a young company. Innovation is encouraged within a framework we call “Listen, Learn and Innovate.” We drive innovation based on what our customers are telling us, and we use that to enhance the technology and the product. We aggregate data across the disputes platforms, in an anonymized fashion, for the benefit of all customers to improve the platform. What I have learned at Modria is that every time I turn to anther industry, I discover a category of disputes that have probably impacted my own life in the past, and that I wish I had had a mechanism to resolve.</p> | <p>Technology innovations you will see from us is the use of machine learning and AI to learn from our customer dispute volumes, and to tune policies to auto-resolve issues when we can. Based on the pattern and behavior our customer’s customer has shown via the platform, if we know what the answer is going to be, then why are we sending them to a customer service agent? Let’s say we are serving an online marketplace: when a customer clicks “I have a problem,” we ask them some questions. We take them through this diagnosis process. If in answering these questions, we realize 99 percent of the time the answer is going to be X, we can offer that solution right then and there. It might be as simple as telling them: “A replacement is on the way; it’ll be there overnight.”</p> | <p>I think this use of data and AI is changing our lives in ways we don’t even expect. I watch my granddaughter interact with technology, and people talking to their phones, and I watch Uber self-driving cars in San Francisco. The most interesting innovation to me is the way that software is going to become intelligent, and essentially become our companion as we travel through life. And it is sneaking up on us from a social perspective in ways people are not anticipating.</p> | Scott Carr | View Edit Delete |
30 | <p>In 2012, Greg Smith became an overnight game-changer in the debate for Wall Street reform, with his sensational public resignation in the New York Times: “Why I am leaving Goldman Sachs.” The former Goldman equities vice president is again tackling systemic inefficiencies and predatory practices in the financial world, but this time it’s in the retirement savings sector. Smith recently accepted the role as President of Blooom, a Midwest startup which was named a Word Top 10 Innovative Company (2015) in the personal finance space by <em>Fast Company.</em></p> <p>The South African expatriate was motivated to move due to the realization that technology innovation had yet to be harnessed to bring down costs for consumers in the financial services sector – and his conviction that, in a gridlocked legislative environment, only innovation could trigger rapid reform.The company was created in response to these astonishing research findings: that four out of every five 401K plans are incorrectly invested, and that the average American unknowingly pays $150,000 in investment fees over their lifetime – the bulk of which are entirely needless. Also, its products were innovated on the basis of these twin conclusions: that 401K plans simply cannot be efficiently managed on a DIY basis, and that only the wealthy can afford financial advisers who can customize and maximize the investments while minimizing their costs.</p> <p>Just a year after its official launch, Blooom has already taken over management of 401K plans for clients in 48 states, using smart software which automatically rebalances investments, while lowering fees. Blooom manages close to $100 million of retirement assets, and employees at half of the Fortune 50 have already signed up as clients of Blooom.</p> <p>Blooom is also disrupting the competition with its flat fee business model charging individuals as little as $1 per month to manage and update their portfolios. Additionally, an essay was published in Time magazine this month exposing the astonishing inefficiencies in the 401k system. Smith is again giving a public jolt to conventional thinking. And his mission is nothing less than to see an entire generation of Americans harness smart technologies to secure their retirement future.</p> | <p>The US retirement space has changed significantly over the last few decades. People of a previous generation were more likely to receive a guaranteed pension either from their employer or the government. Today, Social Security is not enough to provide a stable retirement, and guaranteed pensions have largely disappeared. So Americans have to fend for themselves and are left with a legacy 401k system that was never designed for the middle class.</p> <p>It has an overwhelming amount of choice, often high fees, and often poor selections of index funds. Many people are bewildered and overwhelmed by this complexity, and make no choice, often missing out on a decade of compounding returns. Others can make bad choices and pay away up to a third of their nest egg in fees, often without knowing it. </p> <p>Blooom is the first company that has a completely fresh approach to the 401k space. We are an online service that analyzes any 401k, no matter where someone works. We then recommend the necessary changes. Finally, if the client hires us, we completely take over the management of their 401k – we make the changes for them, we keep an eye on the accounts, and we rebalance it over time. We are not a 'Do-It-Yourself' Solution. We are a 'Do-It-For-You' Solution. All for a Netflix-like subscription fee of $15/month or less.</p> <p>We use the image of a flower (hence blooom!) to represent the health of the 401k, instead of complicated jargon or charts or graphs that no one understands. Clients love the simplicity and we have grown quicker than anyone else in the automated advisory space in the first year since formal launch. We manage 401k’s for people in 48 states, from age 22 to 67. Our mission is to fix broken 401k’s for millions of Americans.</p> | <p>There are a few impediments that have really kept 401k’s in the 1980’s, despite the advancement of technology. Firstly, 401k’s and retirement are seen as an HR function in the benefits department. Therefore the executives making the decisions on 401k’s have ten other benefits to worry about and are not finance people. So the 401k’s have often been littered with poor fund selections that end up being egregiously expensive for their own employees. There was even a time when the corporation would get kick-backs or part of the very mutual fund fees that their own employees were paying for their retirement.</p> <p>Paradoxically, retirement became a profit center for the very corporation that was supposed to be providing you with benefits. The second major issue is that government largely thinks of the savings problem as a tax issue instead of a complexity issue. I.e. Government thinks if they can just offer you more attractive tax deferrals in your Roth IRA, that tens of millions more Americans will save more money. But behavioral economist after behavioral economist has told the Senate that it is not about taxes. The overwhelming majority of Americans don’t understand the complex tax system. What they need is a very simple system, without jargon, that makes making the “right” choice an easy proposition. There is no innovation, use of technology, or simplicity in the 401k system. This needs to change.</p> | <p>Well I am quite new to Blooom, but am not new to its mission. I think we try to think of every decision we make through a human lens. Finance is complicated – often purposefully – so no one can understand it and so that lots of people can continue to make lots of money off an unsuspecting general public. Our view is that anything we do needs to be understandable to someone who knows nothing about finance.</p> <p>That’s why we charge people a transparent, monthly subscription fee instead of the industry standard of “basis points” or “expense ratios” that get deducted out of people’s accounts without them knowing it. That’s why we use simple imagery to explain one’s 401k instead of a complicated chart. Because of this drive to make everything human, we are forced to keep things really simple. And in finance, keeping things extremely simple turns out to very innovative, and something that people love.</p> | <p>The biggest change will come within 5 years, when the millennial generation will constitute half the global workforce. People underestimate how differently millennials think about money versus baby boomers. Millennials like simplicity, transparency, the predictability of software, the ability to tap the wisdom of their peers and crowdsource an answer instead of paying an expensive advisor for the answer. And that advisor had to deal with lots of paperwork that also runs up the costs. All of this is going away in the investment management business. I think costs will come down and transparency will hopefully go up.</p> | <p>I think much of what is going on in the mobile banking space in developing countries around the world has been truly extraordinary. Examples like M-Pesa that started in Africa, which allows those who don’t have access to a bank to perform much of the basics of banking – sending money, paying people, saving small amounts of money. Why doesn’t the developed world follow this example and make it easier for everyone to be banked? </p> <p>I also think some of the “Nudge" practices going on around the world in national savings systems is good. For example, we know that the only proven way to make people save money is to make it easy for them. I think the 401k system for example should move in an opt-out/nudge direction. For example, when a new person joins a company, start taking some small amount out of their salary and putting it away for them in a low cost, appropriate investment. This will then escalate this percentage over time or when the person gets a raise. And the employee can absolutely opt-out. But what economists find, is that few people do opt out, and ultimately are happy that this inertia set in.<br /><br />Companies<em> are </em>allowed to automatically enroll their employees to 401k plans, yet only about half of corporate CEO’s choose to do so. This is very sad, since many people could be contributing to a nest egg, and often getting free matching from their company, yet they don’t do so because they never get over the hurdle of signing up for their 401k in the first place.</p> | Greg Smith | View Edit Delete |
53 | <p>Michael McCarthy is a serial entrepreneur, an executive coach at Harvard and MIT, and a strategy consultant to scores of start-ups around the world. Having founded six start-ups, McCarthy now guides some of the world’s most talented business minds at Harvard’s Advanced Leadership Initiative.</p> | <p>Just last week, I had a healthcare company from Tennessee wanting to know how to do intrapreneurship pitches in-house; how to pitch things like app ideas that might be approved by upper management.</p> <p>There are the important basics for the intrapreneur process, like knowing who you’re pitching to, and what their needs and criteria are; what <em>they </em>say – pre-pitch – would lead to their green lights and their red lights.</p> <p>But for the brainstorm phase, I coach a mastermind process designed to remove negativity.</p> <p>First, we gather five to six people from very different walks of life – different genders and ages and backgrounds and business units.</p> <p>The (originator) is asked to take three minutes to describe the idea or the dilemma or the challenge, and they have to describe the kind of solution they’re looking for – like “I am looking for a solution in the form of an app, not a new business division.” You have to be clear on the kind of solution you want. Then there is three minutes of Q&A, just to clarify the challenge or the problem. Then, the person with the challenge or dilemma has to physically leave the room and they take their self-limiting beliefs with them.</p> <p>It’s important they leave because what they tend to do is interrupt too much – and say “oh, I tried that; that won’t work.” When they’re not there, people will be free to say the bad idea, and then leapfrog to a better idea.</p> <p>The format we use in the brainstorming session is “yes, and,” where the response must literally begin with “yes, and,” which makes the shy people and the introverts feel safe. You can still disagree, but it needs to be in a positive way – one person can say “I think it should be purple,” and another can say “yes, and I think it should be any color but purple; but I might agree to maybe a shade of purple, like lavender.”</p> <p>The person with the dilemma then returns to the room and just listens.</p> <p>Recently, in Boston, for instance, this method led to a challenge for finding sufficient recharging stations for shared electric scooters being entirely reframed with this total solution: that pre-charged scooter batteries simply be swapped out by users at the scooter racks, and forget about recharging altogether.</p> <p>And in Armenia – one of several developing countries where I have coached – the mastermind method provided an employment solution for returning refugees on either side of traditional working age, in an interesting social entrepreneurship challenge. The young refugees had few skills; and the seniors had skills but not the vigor to use them directly. So the group came up with the Armenian Shopping Network – based on the Home Shopping Network concept in the U.S. – with the returning Millennial refugees doing YouTube videos of the seniors teaching traditional Armenian cooking classes, and selling the products by mail. It turns out from the discussion that keeping the culture, the food and the language alive was particularly important in the diaspora. The young people do the social media, the baking and the shipping; the older people set up the recipes and the use cases.</p> <p>When I coach start-ups, the first thing I do is to encourage them to consider doing a service business rather than using a manufacturing model. If there is a way to offer a product as a service, it eliminates so many problems, and you don’t have to worry that much about attracting venture capital and angel investment. Simply framing a business model around service stimulates innovation.</p> <p>My second fundamental piece of advice is to make it a need, not a want.</p> <p>The base challenges for startups in developing countries are quite different from those in the U.S. In Armenia, I observed that founders had a huge challenge with trust and personal cynicism.</p> <p>People told me there’s no point in trying to start a successful business because the government is corrupt and they’ll just steal your business, so why bother. So, I had to overcome this very negative attitude that everyone is a crook. In an auditorium of 200 people, about half were incredibly cynical – that negative iron curtain mindset is a killer for start-up development. A lot of developing world entrepreneurs have a challenge around shyness, and the need to learn American style pitching – right down to the humor, and dealing with the apparent meanness of venture capitalists. They need to learn how to keep their self-esteem intact after rejection.</p> <p>I must have talked to 1,000 would-be start-up founders, through my Harvard course on entrepreneurship, MIT Launch, Babson College and the $1 million Hult Prize.</p> <p>In the start-up world, I think there is way too much focus on making a ton of money as a motivation to start a business. Just paying your own bills through your idea, not having a boss and doing what you want, when you want – could be immensely rewarding. Most start-ups don’t need to be focused on whether they’ll become a unicorn for the idea to be viable. Starting the Budi Foods business made me happy to be alive.</p> Just focus on the life that you want. | <p>Self-limiting beliefs and negative thinking are the biggest inhibitors to innovation. If I have a brainstorming session and someone says, “that won’t work,” I kick them out…literally. I’d rather have someone with limited intelligence in a good mood than a brilliant person in a bad mood. They take all the shy people off the ideas board.</p> Also, being in your silo, or putting a ceiling on your business model, inhibits innovation. Saying, “Oh, we only do apps; we only do things in the U.S.; or we’re only in the food business” will prevent innovation. | <p>One key element is that the CEO must believe in innovation, and that belief needs to trickle down. It needs to be embraced, not just tolerated – it can’t be just “Innovation Day” for one day a year.</p> <p>Also, they need to set aside dedicated, respected time for innovation. Companies should not cancel out innovation time; that innovation time needs to be ring-fenced, irrespective of other events, like end-of-quarter. The clear sense must be: innovation is how we stay alive and relevant 100 years from now.</p> <p>When I had a chocolate company a few years ago, and we had our first commercial run at a new location in Ohio, I was on the production line on the first day. And I ended up involved with making a part for the chocolate machine, because they weren’t coming out right. I absolutely recommend that C-suite executives spend time on the production floor. If I was the CEO of FedEx, I’d go undercover as a FedEx driver for a day each month, and experience what it’s like, and learn from customers. You will discover so much as a lower-end employee, or if you drop into different departments, especially if something is not working in that department.</p> | <p>The clear answer there is Blockchain – primarily because it benefits the consumer massively. Soon, consumers are going to see that certain services are much cheaper and faster. For example, when you want to buy an apartment, the commission will be cheaper because there are fewer middlemen, and it will be a much faster experience. Your references will be up in the Blockchain, instead of having humans reverify what was verified ten times before. It brings a lot of efficiency that trickles down directly to the consumer. Yes, Blockchain is in its early days, and I have yet to speak to someone who says they’re making money directly from the technology. But they are starting to use it. You’ll first see the benefits in financial services, like when you buy stocks or mutual funds – it will settle in minutes; you’ll see funds and checks clearing immediately into your account; you’ll be able to wire funds without a bank in the middle.</p> <p>You’ll also see Blockchain efficiencies in supply chains, with shipping and tracking.</p> | <p>What I love is fractional real estate ownership, where you can buy a fraction of someone’s house in another city; you can buy $1000 of someone’s mortgage. You become a mini bank because you want the upside of the market exploding. You can resell that portion to someone else. Its already started in Australia with a company called Brickx.com. I love that it gets rid of the banks. </p> <p>And I’ll tell you something that someone should be doing, but that doesn’t exist yet to my knowledge. I think people’s identity and records that prove what they’ve done can be put on the Blockchain. So, for instance, if you become a refugee – something people don’t plan for – you’ll be able to get out of that refugee camp faster by proving that, yes you do have a PhD or engineering degree; yes you do have funds sitting in Vanguard to pay for a flight out. A lot of experienced teachers from Puerto Rico are now having to work as teaching assistants in Florida because the records showing their teaching certificates have been destroyed in the hurricane.</p> | Michael McCarthy | View Edit Delete |
7 | <p>Chris Hummel has a 20+-year career in enterprise sales and marketing and is a globally-recognized thought leader and widely-respected senior executive in the technology industry. Chris Hummel is a true international executive, having lived, worked, and successfully led organizations around the globe, including the US, Germany, Eastern Europe and Asia.</p> | <p>Innovation is something you don’t easily teach or even force on an organization. It requires fresh and unique perspectives gained from either pulling people out of their traditional roles and comfort zones or by bringing in outside perspectives through new talent acquisition or external expertise. At the same time, executive leaders must display and encourage a strong preference for thinking ‘outside the box’ and a willingness to take risk to foster a change/innovation culture. </p> | <p>Innovation is stifled in companies that operate in silos, where leaders are inwardly focused, and where stakeholders have allowed business challenges, market dynamics or competitive pressures to dominate decision making and investment decisions. There is ample evidence of brands who have seen market leading positions deteriorate due to over-confidence and too much “we know best” mentality. Finally, companies whose research and development agendas are dominated by engineering or product focus rather than a market focus often fall behind peers from an innovation perspective.</p> | <p>A determined shift to a market-focused R&D agenda is helping to drive an accelerated pace of innovation at my company. We have shifted away from investment decisions driven by the product portfolio or so-called “long tail” development projects toward a decision schema driven on careful analysis of industry trends and changing customer requirements. Those companies whose investment priorities are the result of market-facing analysis will have a faster time to value from innovation projects.</p> | <p>The emergence of improved collaboration and communications technologies will enable innovation workers to better come together as virtual teams and amplify the collective effort of today’s “anywhere workers.” Such technologies will seamlessly combine voice, video, text, structured and unstructured content while also enabling a much improved collaborative environment that will drive not only higher levels of business performance but also accelerate the pace of innovation.</p> | <p>I admire Apple for what they have done for product design. Frog showed us the power of bringing customers into the conversation around innovation. In the end, I admire any company who has the courage to seek a better alternative when the “good enough” option won’t do.</p> | Chris Hummel | View Edit Delete |
45 | <p>Ayad sees a trend in the retail landscape where the front end registers disappear, and where check-out lines are eliminated through predictive data analytics, sensors, and artificial intelligence – and, eventually, where self-driving shopping carts meet you at the entrance of the store with your shopping list already uploaded into the cart screen, and even direct you to the items you need. </p> | <p>I really don't know whether we are changing the game or the game is changing us. Success in business, today, is all about the optimal intersection of the physical and digitals worlds, and the interaction between humans and intelligent machines.</p> <p>If you really think about the retail industry, so many innovations have compelled companies to start to think different, to act different, and to plan for potentially different outcomes. Within workforce management, for example, the industry is going through tremendous shifts due to the expansion in internet selling coupled with rapidly changing demographics and regulations. Thus, brick and mortar stores are under a different type of pressure. And it is said that necessity is the mother of all inventions, so many organizations find the dynamics of the environment and the accelerated speed by which innovation is happening a threat and an opportunity leading to new strategies and innovations.</p> <p>I’m of the opinion that societies change slowly, and despite so many years in e-commerce rapid growth, e-commerce is still a fraction of the total retail and service industries. So, it is going to continue to be a combination of digital and physical for the retail industry. Many organizations are utilizing data - predictive modeling, advanced algorithms - to better forecast work in the stores. And once work is forecasted and measured, then it becomes easier to schedule people to be at the right places and times - either when the truck is coming to the store to deliver products, or when customers are coming to the stores to receive a service.</p> <p>You need optimizing software to help deliver efficiency. But no one platform is going to be the only and the ultimate solution. I think what's so clear, at least in my mind, is that the future is a blend of the digital and physical capabilities.</p> <p>Based on my academic and my industry knowledge, I can tell you that customers want to shop anytime and anywhere. Leading retailers, including Bed-Bath, want to serve customers wherever, whenever, and however they wish to be served. Leading retailers want to be there for customers when they want to shop, the way they want to shop, and the way they want to complete the transaction, whether it is “ship it to my home” or “let me pick it from the store”, or a combination of both.</p> <p>What's exciting about the current technology is how friendly it is to everyone involved. For example, 10 years ago you had to go to the store to see your schedule as an employee. And the manager of the store ultimately decided who worked when. There was little freedom or flexibility. Today, technology allows you to see your schedule on your phone, and even to opt for available shifts. Employees can swap shifts with their coworkers if they need to, without disrupting operations. This is a significant win-win change.</p> <p>The technology is not only allowing organizations to respond better to customer needs, but also to employee's needs and situations. It's becoming more participatory versus top-down. And it is proven in research and in practice that happy employees create an environment of happiness for the customers. Efficient workforce management is beneficial to customers, and to the business. That's why companies invest in them.</p> <p>In terms of benefiting from customer insights, today, you can measure and map customers’ movement in the stores from the entry point to the exit point through sensors. Based on data, you would know exactly, or on average, know how long the customers will be shopping in your store. Eventually, you would know when they're going to get to the register. Ultimately, you will be able to know the number of employees that need to be at the front end to help the customers exit the building and pay for the merchandise. So, it is not just long-term predictive modeling, but on-time, live, as you go, so that there will be totally no long lines up front for customers who choose to interact with an employee, and managers would be able to respond faster to customers’ needs. </p> | <p>I’m very familiar with two industries: the retail industry and the academic industry. Luckily, both industries have adopted and encouraged innovation, perhaps because of the competitive nature of the retail industry, and the critical thinking nature of academia.</p> <p>Fear of failure and siloes are often common challenges. Financial obstacles and opportunities are both drivers and blockers of embracing innovation. You might go after an innovation because it's financially rewarding, but then you may not embrace it fully because it's financially burdening on the short term.<br /><br />Some are short-sighted; they might think about the quarterly results, and not necessarily look at the long term. The other fascinating aspect is the speed of innovations. Some companies are hesitant to embrace innovation because today's innovative solutions may become obsolete quickly, which add burdens on the organization; especially from a change management perspective. However, perhaps the biggest impediment lies is the culture of the organization; organizational culture is the make or break for innovation. </p> | <p>The retail industry was among the first industries to benefit from (disruptive) innovation. Take Walmart for example, it started with Sam Walton’s innovative ideas about the nature of the retail store - the role of transportation and logistics, and the mindset of trying new things. Walmart optimized innovation by supporting its people to become owners of the business and by techniques such as profit sharing and career planning. You see, employees are called associates, and associates call Walmart stores “my store”. A culture that's built on the idea that the employee is the owner of the business unit, not the keeper of the business unit, is positioned to benefit from the unlimited creativity of people.</p> <p>Another example from Walmart: They have a practice called VPI, or Value Producing Items, where employees compete and have fun adopting and promoting specific items. Employees get recognized on results. All this infuse tremendous amounts of energy, engagement, pride, and innovation into organizational culture.</p> | <p>The Internet of things, robots, artificial intelligence, brick and mortar store closure, regulations, and the entry of new organizations to the marketplace. For example, the entry of Lidl from Europe to USA.</p> <p>Lidl already has 10,000 stores in Europe, and they’re coming to the United States like Aldi did, and Aldi already has 1,600 stores in the US, and by some reports, in the 2018, they may have another 400 stores, reaching 2,000 stores. That's almost half the size of Walmart! Granted, the stores are smaller, but they are everyday low-price, because of their competitive pricing and their business model Walmart has to respond, and they are. Walmart recently announced drops in the price, and Target - a couple of days ago - announced a significant investment in price. So that entry of new organizations, and new regulations will significantly impact the retail industry.</p> | <p>From my perspective, one of the innovative strategies that I find very compelling is the idea of underground delivery of freight, supported by drones and self-driven cars and robots. The idea of moving freight underground by a magnetic field that's created by electrified coils, when complemented by drones and self-driven cars seems fascinating and disruptive. Research is happening, especially in the UK, around the concept of underground fright delivery. Why not, water and electricity are delivered to homes underground; why not packages! Imagine that! </p> | Amine Ayad | View Edit Delete |
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