Showing posts with label best innovators. Show all posts
Showing posts with label best innovators. Show all posts

Saturday, March 7, 2009

Why Some Ideas Survive and Others Die

Chip Heath and Dan Heath have introduced a new "sticky guide" on making your ideas stick, and eliminating the ones that ought to die. How do you make your ideas stick or prevail (without being a dictator)? Just today, I was trying to make my thirteen year old son do some backyard work (cleaning the table, chair, moving the garbage bins, and picking up our dog's poop). As a dad, I asked him twice to do this chore (and forgot that this was a weekend when he wanted to relax a bit). He told me he already did the work (he had only partially done the work). Finally, I had to raise my voice and even yell at him to get up and go out, and finish the work. Which he did, albeit grudgingly. Imagine trying to do this at work. Imagine yelling at your employees and telling them to do their work, when they are not interested or busy doing something else. Either your employee will quit on you, or worse yet, complain against you with Human Resources (and may even sue you). Would you yell at your customers to buy your products or services? "Hey you, you must buy this NOW. I ASK YOU TO BUY THIS PRODUCT NOW!!" Sure, Mr. Customer will buy the products, but your competition's instead, even if it was expensive or not to their best needs. What is wrong with this picture? We are trying to dictate our ideas, our thoughts, our actions, our products, our services down to our recipients. How far can you succeed with this approach? Not far. This is a recipe for failure.

The real challenge is to transform the way people do things, act, work, live their lives. Your customers are busy with their work solving their everyday problems, inspiring their employees to work harder and be more productive, implementing processes to streamline operations and reduce costs, and creating their own important products and services that will make a difference in their customers' lives and work. And the cycle continues.

Netflix had a simple idea: NO LATE FEES. Why was this simple? Because customers hated late fees when they rented their movies (because there was always a due date for returning the movies). Customers loved their movies, but simply hated to pay extra fees when they were late (remember haggling with the checkout desk at Blockbuster over your late fees). However, Blockbuster made a lot of money from late fees; except, it was out of touch with its customers. Netflix innovated with this simple idea of no late fees and no due date, and created the largest online movie rental business that boasts 10 million subscribers today. Blockbuster is filing bankruptcy this year because it is not able to survive on its antiquated business model. Call it Netflix's creativity, or Blockbuster's ineptitude. After all, Blockbuster still has the largest movie rental business; one small fact: it's not profitable.

In "Made to Stick", authors Chip Heath and Dan Heath provide us six key qualities of an idea that is made to stick:

1. Simplicity: "How do you strip an idea to its core without turning it into a silly sound bite?"
Authors give examples of army commanders when they choose simple battle plans at war, Southwest Airlines focus on being "THE low fare airline", or then presidential candidate Bill Clinton's simple campaign strategy on "It's the economy, stupid." Keep it simple! Simplicity sticks if it is done right and communicated effectively. Frequently, CEOs and leaders alike fall in the trap of creating complexities, and even creating processes to block creativity and innovation.

2. Unexpectedness
"How do you capture people's attention and hold it?" When you are taking some one's photo, how long is their attention span? A few seconds (unless you are an actor or a politician). Do you remember yesterday's news? Do you even remember what you did last weekend or the weekend before? Here's a question: Who is the second largest maker of MP3 players after the Apple iPod? Chances are you don't even know this. Authors give example of Nordstorm on how they "shock new employees into embracing high customer service standards."

3. Concreteness
"How do you help people understand your idea and remember it much later?" The best innovators are our school teachers - the good ones. They help us understand new concepts, languages, mathematics, sciences, and more, and through the rigorous process of teaching (and learning), help us remember this throughout the school year. Except when summer vacation comes, and we begin to forget what we learnt except for concrete things such as subtraction, addition, some science principles. Authors provide example of an elementary school teacher who helped students overcome racial barriers by creating a "brown eye, blue eye" experiment in her classroom. A simple exercise such as writing down all the white things you know, and then all the white things in your refrigerator shows how you remember concrete things.

4. Credibility
"How do you get people to believe in your idea?" Easier said than done. Make ideas credible and trustworthy. Credibility comes from success stories. From your customers who are trying out your ideas, and providing you valuable feedback. From your sharing this feedback with new customers, and improving your products. Credibility takes time to build. It is sort of a reference check when you meet someone new. You have no clue as to that person's credibility. So you ask around, and do some background check. But what if someone else is trying hard to make you less credible. Well, your work even becomes harder. Whenever you are competing against an established brand or market share leader, how do you get your customers to believe in you? By offering a better product, a differentiated product, a lower cost product perhaps.

5. Emotional
"How do you get people to care about your idea?" This one is tricky. You are trying to appeal to the human side of the brain, the one that is more tuned to emotions and mood. Authors give an example of a donation survey and how most people have something in common to Mother Teresa: When it comes to our hearts, one individual trumps the masses. Authors show that products or services must appeal to people's emotions, and should create an effect that is memorable. Make your ideas memorable. What drives you to work every morning? What drives you to go play golf on weekends? What drives you to buy the car of your dreams? In as much as you can separate the analytical mind from the emotional, and capture the imagination, your ideas will be successful. Authors examine psychologist Abraham Maslow's research on what motivates people, and share with us the needs and desires that people try to fulfill:
  • Transcendence: help others realize their potential
  • Self-actualization: realize our own potential, self-fulfillment, peak experiences
  • Aesthetic: symmetry, order, beauty, balance
  • Learning: know, understand, mentally connect
  • Esteem: achieve, be competent, gain approval, independence, status
  • Belonging: love, family, friends, affection
  • Security: protection, safety, stability
  • Physical: hunger, thirst, bodily comfort

6. Stories
"How do you get people to act on your idea?" Definitely not by dictating. However, by influencing, by friendly cajoling, by reminding, and by showing examples of successes. What stories do you hear around your workplace? Are your customers happy? Do they call you and thank you for the products and services? Would they refer you new business? Are your employees inspired to come to work each day? Are your customers inspired to do business with you? Are their stories about transformation in the way your customers work and act that are profound, memorable and worth sharing? The more stories about the positive effects of your products on your customers' needs and wants, the better your ideas become. Authors give example of Jared, the now Subway spokes person, who actually lost weight by eating healthy sandwiches at Subway, and how Subway signed him up to talk about his story. How inspiring was his story to the rest of us? Did you go to Subway to eat a healthy sandwich and remember Jared?

Mark Twain once observed: "A lie can get halfway around the world before the truth can even get its boots on." This is true of the world we live in. A bad experience, a half-lie, a real lie, a rumor travels fast and furious especially in the connected world we live in. And as a business, you have to be on top of this so that real stories are being shared about your ideas and successes, and not the perceived ones.

Would you like to become an innovator? I invite you to participate in the Innovation Bootcamp workshops:

The Innovation Bootcamp consists of Six Engaging Online Workshop Sessions (details below):
1. Benchmarking and Leading with Innovation
The Business Case for Innovation
2. Unblocking Creativity and Innovation
The Essential Processes and Skills
3. Unleashing Team Innovation
Great Teams Deliver Great Innovations
4. and 5. Business Innovation Case Studies
Learn how Top Innovators Lead with Innovation
6. Building an Innovation Factory
Create a sustainable, scalable Innovation Process


Or, download my leading eBook on Creativity and Innovation in Business used by over 1,000 professionals, faculty and innovators at educational institutions and businesses all around the world including EDS, Ericsson, Center for Sales Strategy, IdeaChampions, Acara Global, Byrne Dairy, Cleveland Clinic, Magpie, DOJ/FBI, HP, Hewlett Packard, Intervista Institute, Fryett Consulting Group, Satellite Shelters, ProductVentures, Speakeasy - a Best Buy company, Jarden Consumer Solutions, Hallmark, Infinium, DeakinPrime - Deakin University, Lucas-TVS, McCann Worldgroup, S.P.Jain Center of Management, Suffolk University, RiCoMan, AmpControl, Craig Rispin, Momentive, Champion Laboratories, University of Phoenix, University of Washington, SFR - Neufbox, Attwood as Edison, Academy of Sport, Ideogenesis, Principled Innovation, Meridian Partners, Ananzi, Tangibility, Syngenta Global, Speedy, The Business Lab, Deloitte, Lane Management, University of California at Irvine, Wharton Business School, Babson University, Larsen & Toubro, Nokia, Credera, Pfizer, Bilkent University, Indian Institute of Science and many more.

This eBook is a 212-page collection of over 55 best practices, case studies, and insights on the current state of Innovation in Business at Top Innovators including Apple, Google, Netflix, 3M, Proctor and Gamble, Johnson and Johnson, Toyota, GE, BMW, Deloitte, Frito Lay, IBM, Nike, Starbucks, Southwest Airlines, Microsoft, Dell, Intel and more. With pertinent articles from the award-winning Creativity And Innovation Driving Business Blog, this Faculty eBook provides real-world examples on how the Top Innovators innovate and grow their business successfully time and again, especially during economic cycles. Creativity And Innovation in Business is a definitive guide that will help you unblock creativity, uncover and create game-changing innovations, and make exponential business growth a reality. Learn more...

The authors conclude by providing sticky advice to managers, teachers, and everyone on how to make our ideas stick - create a strategy for your work team, avoid three barriers that kill communication, make your lessons stick, and even unstick a sticky deal.

I highly recommend "Made to Stick" to business managers, leaders, CEOs and innovators alike. It is a guide you can reference meaningfully as you change your business, spark new ideas and jump start innovations - build that innovation factory.

References:
"Why Some Ideas Survive and Others Die - Made to Stick" - Chip Heath & Dan Heath

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

Tuesday, April 22, 2008

The Top 50 Innovative Companies in the World - Apple is #1 4th year in a row

Rank
Company
HQ Country
HQ Continent
Revenue Growth
2004-07*
(in %)
Margin Growth
2004-07*
(in %)
Stock Returns
2004-07**
(in %)


Most Known for its
Innovative...
(% who think so)
1 APPLE USANorth America47 69 83

Products (52%)
2 GOOGLE USANorth America73 5 53

Customer Experience (26%)
3 TOYOTA MOTOR JapanAsia12 1 15

Processes (36%)
4 GENERAL ELECTRIC USANorth America9 1 3

Processes (43%)
5 MICROSOFT USANorth America16 8 12

Products (26%)
6 TATA GROUP IndiaAsiaPrivatePrivatePrivate

Products (58%)
7 NINTENDO JapanAsia37 4 77

Products (63%)
8 PROCTER & GAMBLE USANorth America16 4 12

Processes (30%)
9 SONY JapanAsia8 13 17

Products (56%)
10 NOKIA FinlandEurope20 2 35

Products (36%)
11 AMAZON.COM USANorth America29 -11 28

Customer Experience (33%)
12 IBM USANorth America1 11 4

Processes (31%)
13 RESEARCH IN MOTION CanadaNorth America56 -1 51

Products (37%)
14 BMW GermanyEurope6 -5 11

Customer Experience (40%)
15 HEWLETT-PACKARD USANorth America10 17 35

Processes, Business Models, and Customer Experience (27% each)
16 HONDA MOTOR JapanAsia12 6 14

Products (40%)
17 WALT DISNEY USANorth America6 14 7

Customer Experience (63%)
18 GENERAL MOTORS USANorth America-2 NA***-11

Products (55%)
19 RELIANCE INDUSTRIES IndiaAsia31 -7 94

Business Models (31%)
20 BOEING USANorth America9 32 21

Products (63%)
21 GOLDMAN SACHS GROUP USANorth America30 6 28

Processes and Business Models (33% each)
22 3M USANorth America7 5 3

Products (45%)
23 WAL-MART STORES USANorth America10 -2 -2

Processes (48%)
24 TARGET USANorth America11 3 0

Customer Experience (67%)
25 FACEBOOK USANorth AmericaPrivatePrivatePrivate

Customer Experience (51%)
26 SAMSUNG ELECTRONICS South KoreaAsia2 -14 8

Products (42%)
27 AT&T USANorth America43 6 23

Customer Experience (33%)
28 VIRGIN GROUP BritainEuropePrivatePrivatePrivate

Customer Experience (47%)
29 AUDI GermanyEurope11 11 41

Products (50%)
30 MCDONALD'S USANorth America7 -7 25

Customer Experience (42%)
31 DAIMLER GermanyEurope-11 37 28

Products (35%)
32 STARBUCKS USANorth America23 -2 -13

Customer Experience (60%)
33 EBAY USANorth America33 -37 -17

Business Models (28%)
34 VERIZON COMMUNICATIONS USANorth America12 0 9

Services (41%)
35 CISCO SYSTEMS USANorth America20 -5 12

Products (35%)
36 ING GROEP NetherlandsEurope7 4 11

Services (41%)
37 SINGAPORE AIRLINES SingaporeAsia9 5 20

Customer Experience (55%)
38 SIEMENS GermanyEurope1 21 22

Products (41%)
39 COSTCO WHOLESALE USANorth America11 -5 14

Customer Experience (46%)
40 HSBC BritainEurope12 -1 4

Services (39%)
41 BANK OF AMERICA USANorth America12 0 0

Customer Experience and Services (23% each)
42 EXXON MOBIL USANorth America11 7 25

Processes (50%)
43 NEWS CORP. USANorth America4 4 4

Business Models (47%)
44 BP BritainEurope14 -5 11

Processes (42%)
45 NIKE USANorth America8 -1 14

Customer Experience (43%)
46 DELL USANorth America7 -12 -17

Business Models (37%)
47 VODAFONE GROUP BritainEurope7 -21 15

Business Models (33%)
48 INTEL USANorth America4 -10 6

Products (53%)
49 SOUTHWEST AIRLINES USANorth America15 9 -9

Customer Experience (50%)
50 AMERICAN EXPRESS USANorth America3 1 3

Customer Experience (35%)

2008 Report

BusinessWeek/Boston Consulting Group (BCG) recently announced the world's top 50 innovative companies for 2008.

17 of the Top 20 Innovators of The Innovation Index are included in the top 50 innovative companies of the world by BusinessWeek/BCG. This is a testament to the Innovation Index methodology and the process.

There are many new entrants in 2008. The top five innovators from last year have strengthened their positions further, and remain in the top five slots this year also. Apple is #1 for the fourth time in a row owing to another innovation milestone: Apple iPhone (check our sister blog: http://appleinnovation.blogspot.com ) Google is #2 again owing to the growth of the AdWords and AdSense businesses, and the phenomenal growth of YouTube videos post acquisition (although Google is still trying to find the appropriate business model towards making money from the millions of videos served daily). Toyota Motor remains at #3 in large part due to the dominance of hybrid cars - Toyota has expanded its position further by introducing hybrid cars in all the major car lines besides Prius, General Electric remains at #4 due to the emerging alternative energy innovations, and Microsoft rounds at #5, due to the growth of the XBox and new consumer innovations - can Microsoft retain its number 5 position in 2009?.

Tata Group - India vaults into the Top Ten innovative company list for the first time at #6. Tata was not in the top 50 innovative company list last year. Tata recently boldly acquired Jaguar and Land Rover from Ford. Although the big reason Tata is in the top ten is owing to the introduction of Tata Nano, a $2,500 new car that will revolutionize the car industry. Nintendo, at #7, is the top innovator out of Japan, thanks to the runaway success of Wii. Proctor & Gamble fell one notch to #8, but stayed in the Top Ten innovators list. P&G is a perennial innovator, and figures to be in Top Ten for the foreseeable future owing to hits such as Febreze and Mr. Clean. Another Top Ten innovator went up a notch to #9 - Sony. Sony's Blu-Ray and new product mix is causing a turnaround. Rounding out the Top Ten is Nokia out of Finland. Nokia went up 3 places and surged back in the Top Ten list. Nokia is the heavyweight in wireless, and the new Nokia models are doing rather well.

General Motors is on a comeback with exciting new electric concept cars, and remarkable new vehicles in the Buick, Hummer, Cadillac and Saturn lines. GM is on a rebound, and could have a solid 2008-2009 if it embraces the alternative energy engine technologies for the new cars. BMW, Honda Motor, Audi and Daimler are also in the top 50 innovator list on the strengths of new innovative cars that are customer friendly and in tune with the present environment. Reliance Industries, another Indian innovator, vaults into the Top Twenty list of innovators. Reliance is a household name in India - from wireless to telecommunications, technology to infrastructure - Reliance can be found in virtually every industry in India. There are key companies shining in this year's list out of England including Vodafone, BP, HSBC, and Virgin Group. Overall, 2008 list of innovators is very well-represented globally.

#25 on the list is Facebook - a new innovator who has the sixth highest trafficked website on social networking - who can one day challenge Google and MySpace.com. Although Facebook still has a long way to go.

According to BusinessWeek, "2008 list of the World's Most Innovative Companies adds three financial measures to the mix to determine the rankings. For this year's list, votes cast in the proprietary BusinessWeek-BCG survey received 80% of the overall weighting, stock returns were weighted 10%, while three-year revenue and margin growth each got 5%. While these changes -- only votes from our survey counted in the past -- marked the biggest shift yet in our rankings of the World's Most Innovative Companies, there are some similarities to previous years."

2007 Report

BusinessWeek announced (external link) the top 50 innovative companies of the world, an annual ranking compiled along with Boston Consulting Group. Click here to view the Top 50 rankings. Listed below is the 2007 Top 50 Innovative companies in the world, along with their 2006 ranking comparison.

Apple Inc. (NASDAQ: AAPL) is #1 again, 3rd year in a row. Google Inc. (NASDAQ: GOOG) is #2 again. And climbing up one notch is Toyota at #3. General Electric (NYSE: GE) is #4, up 2 places; Microsoft (NASDAQ: MSFT) held steady at #5, Proctor & Gamble (NYSE: PG) went up 1 spot to #6, 3M (NYSE: MMM) went down 4 notches to #7, Walt Disney Co (NYSE: DIS) zoomed up a whopping 35 places to #8, IBM (NYSE: IBM) went up 1 place to #9, and Sony climbed 3 places to #10.

There are many new innovators in the BusinessWeek top 50. AT&T (NYSE: T), Citigroup (NYSE: C), Verizon (NYSE: VZ), Nintendo (Japan), Volkswagen (Germany), Best Buy (NYSE: BBY), Merck (NYSE: MRK) and News Corporation (NYSE: NWS) are your new companies. Besides, Royal Philips Electronics (Netherlands), Costco Wholesale (NASDAQ: COST), Pfizer (NYSE: PFE), Johnson & Johnson (NYSE: JNJ), Amgen (NASDAQ: AMGN), McDonald's Corporation (NYSE: MCD), and LG Electronics (South Korea) have vaulted into the top 50 rankings (in 2006, these companies were ranked in the top 100, outside the top 50). This means, a few innovators dropped out of the top 50.



Last year (December 2006), I started The Innovation Index of the top 20 innovators based on 2006 BusinessWeek rankings of North American companies and my own research. I had only included the top 25 publicly traded North American companies in The Innovation Index based on the BusinessWeek rankings so as to evaluate their innovation activity and stock performance on a weekly basis. I am now planning to revise The Innovation Index for 2008 based on this new ranking from BusinessWeek, and am considering including the global publicly traded Innovators - the likes of Toyota, Sony, Nokia, BMW, Samsung, Philips, Infosys (although Infosys was not included in the Top 50 this year), top innovator from China, and more - besides the North American Innovators. This would create the first global Innovation Index for 2008.

How did BusinessWeek come up with the Top 50 Innovative Companies ranking?

According to the BusinessWeek article:
"The BusinessWeek-Boston Consulting Group 2007 list of the World’s Most Innovative Companies is based on a senior management survey about innovation and was distributed electronically to executives worldwide in late 2006. In October, surveys were sent to the 1,500 largest global corporations, determined by market capitalization in U.S. dollars, with instructions to send the survey to their top 10 executives in charge of innovation. The survey was also distributed to senior management members of the BusinessWeek Market Advisory Board, an online panel consisting of BusinessWeek readers, and via the Knowledge@Wharton e-mail newsletter. Survey participation was voluntary and anonymous, and the survey closed in March, 2007. The survey consisted of 20 general questions on innovation and an optional 12 questions focused on innovation metrics.

A total of 2,468 executives answered the survey. Of those indicating their location, 77% were from North America, 12% were from Europe, and 9% were from Asia or the Pacific region. A larger share of North American voters this year may explain some movement in the rankings of some companies on our list."

Compare this to 2006 BusinessWeek rankings, wherein only 1,070 executives answered the survey, although the mix was globally representative - 46% were from North America, 30% from Eurpoe, and 16% from Asia and Pacific.

In 2007, out of the top 50 innovative companies, only 14 were outside North America; in 2006, 20 companies were outside North America. Perhaps this has to do with the executives answering the survey, and their representative global mix.

Regardless, the top 50 innovators in the world are world-class companies creating new innovations through unmatched creativity and driving profitable growth.

Creativity And Innovation in Business Definitive Guide is a 212-page collection of my handpicked 56 Creativity and Innovation best practices, case studies, articles, interviews, and insights on the current state of innovation in business. The Innovation eBook provides real-world examples on how the Top 50 Innovators including Apple, Google, GE, Proctor and Gamble, Yahoo, Toyota, Netflix, BMW, Deloitte, Timex, Frito Lays, Johnson & Johnson, Starbucks, Southwest Airlines, Microsoft, Intel and more innovate and grow their business successfully time and again, especially during trying times. Use this eBook as a guide and relevant resource to find and create game-changing innovations, unblock creativity, and make innovation successful at your business...Learn more

The Innovation Index Reports:
Introducing The Innovation Index Fund - The Innovation Index Fund introduction announcement
Top 50 Innovative Companies in the world - 2007 & 2008 Report on Top 50 Companies and Innovators
The Innovation Index closes 2007 with 66% gain, crushes major U.S. indices
- 2007 Annual Report
Annual Report - Chapter One - Total Innovation Activity
- 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007, and would have returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.

Additional Labels:
top 5 innovative companies
innovative companies
top innovative companies
top companies on innovation and creativity
innovation and creativity top 50
creativity and innovation in business
top 10 creative and innovative companies
top 10 innovator
top 100 innovative business
top 10 innovative companies
top 50 innovative companies

Originally published: May 11, 2007
Updated: April 22, 2008, May 21, 2009
*Past performance does not guarantee future returns