Posts Tagged 'innovation'

You want to start innovating, but how do you pick a winning idea?

One can picture a food or wine connoisseur or a fashion analyst at the catwalks of Paris, or a highly skilled auto engineer at a super car company. These highly specialised experts in their fields know what works in their field. And, because they are so expert, arguably, they are not put off by ideas that to others may seem radical. To experts, who have seen and understand much, to explore newness is an invitation to continue developing rather than accept normal incremental improvements so often prevalent. Perhaps we need to be more like the ‘connoisseurs’ so we can actually spot a useful idea next to a fad, mad or bad one.

The question about how one might cultivate intuition might be considered through the way in which airlines teach their staff to ‘Notice. Understand. Think ahead.’ This process was introduced to actively teach their staff to think about the impact of what they observed in flight. For example, whilst it is fairly inconspicuous to see someone with a lighter, this is extremely dangerous on an aeroplane mid flight. Many people would notice such an activity and stop there, perhaps thinking (intuitively) “something’s not right there” but doing nothing about it. Cabin crew are trained to understand what they see – that is, stop when they get a ‘feeling inside’ and seek to understand the impact it might have. Finally, they are taught to think ahead. The process follows; a) notice a person with a lighter, b) understand that this could start a fire c) think ahead about the dangers this presents and the danger that person may be willing to cause. Then, set about a course of action to mitigate the risks.

Western Union described Alexander Graham Bell’s telephone as an electrical toy and had no use for it. History is peppered with lost opportunities like this one. So, if you are looking to start a business, analyse your idea first by noticing things, understanding the impact if you could change them and think ahead about the greater impact it could have. Follow this idea and you just might be onto a winner!

Customers really are the hands that feed you!

On Thursday I was up at the House of Commons to attended a workshop run by the National Business Awards entitled “Innovation, Evolution or Revolution”.  http://www.antara.co.id/en/arc/2008/6/12/uk-plc-must-invest-more-in-r&d-to-compete-worldwide-report/.  I really enjoy visiting Westminster Palace and keep telling myself that I must make the time to take the family on the tour of parliament.  The event itself was hosted by Andy Love MP, Chair for All-party Parliamentary Group for Small Business.  It was well staged with a nice mix of panellists (including Lord Karan Bilimoria, Founder and Chairman Cobra Beer Ltd, and Martin Lyne,  Marketing Director of Small and Medium Enterprise Orange), and there were certainly no punches spared in a fairly damming assessment of innovation in the UK.

 

One particularly interesting statistic that came out (originally from a Cordis report, “The Power of Customers to Drive Innovation”, www.cordis.europa.eu) is that while most companies recognise customer conservatism and lack of awareness as principle obstacles to innovation, only 15% of UK companies engage with customers in developing product innovations.  Some of the panel thought this would all be down to manufacturers and that service companies are much more in tune to customer needs.  On the latter point, h

ow often have you walked down the High Street only to see the shop-fitters’ van outside that sought-after bijou retail outlet, just crying out for more Gaudy Gifts and Scented Candles or for that matter yet another mobile phone shop, and think “I give it six months”.  No,

it’s not just manufacturers that fail to do the blindingly obvious thing and ask potential customers what they think

, even if they do run the odd product focus group.

A few years ago at SInC, www.sinc.co.uk,  we made the decision that even within a technology incubator environment where investment is often seen as the key driver, for most companies trying to find a customer was a much more productive first step than searching for an investor.  We therefore changed the focus of our activity from finance, business plans, investment pitches and business angels to sales, marketing, product presentations and customer networks.  This change has been instrumental in maintaining such a high success rate in building sustainable businesses.  It also helps to reduce the time to market for many new products and technologies.  We have been pleasantly surprised by the positive reaction of large corporates to provide constructive input and customer mentoring to our companies.

Customers really are the hands that feed you.

Mike Herd, Sussex Innovation – June 16th 2008 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nice Idea – Wrong Place

A sports car is travelling fast down a quiet country lane, braking fast it stops alongside a farmer leaning on a 5-bar gate looking out over the fields.  “I’m lost”, says the driver, and goes on to ask directions to a local country house hotel.  The farmer thinks deeply before he replies – “I wouldn’t start from here if I were you”.

 

When I read about new technology investments in the magazines like Growing Business, www.growingbusiness.co.uk, I am often struck by the high proportion of deals that involve regional public sector funds such as Scottish Enterprise, www.scottishenterprise.com, or One North East, www.onenortheast.co.uk, is this because they have better technology start-ups there.  Of course not, its because innovation has become a regeneration issue. 

 

Don’t get me wrong, I’m all for supporting new enterprise in regeneration areas, some of our own companies have moved to Wales to take advantage of cheap manufacturing space and employment incentives (that are not available in Sussex).  But to me it’s counter-intuitive to discriminate new technology ideas on where in the UK they come from.  And its not just investment funds, as far as I can see, proportionally more public money is made available for research & development and commercialisation funding for projects outside London and the southeast. 

 

How does this help the UK?  New technology ideas should be taken on their merits and funded where they are.  Support the company through its early stages and then you can offer incentives to encourage companies to move to regeneration areas (their decision). 

 

ENCOURAGE the NATION’S INNOVATION! !

Mike Herd, Sussex Innovation, www.sinc.co.uk