May 23rd, 2007

When Great Ideas Meet Great Ideas

A great book to read is The Medici Effect, which provides a unique way of looking at a situation from a foreign perspective and finding the best way to find an innovative solution.

Author Frans Johansson eloquently offers a perspective that “when you step into an intersection of fields, disciplines, or cultures, that you can combine existing concepts into a large number of extraordinary ideas.” His thesis is that our odds increase at sourcing innovation when we are no longer focused on concepts within the field - but are generating ideas that leap in new directions.

He calls this result - the “Medici Effect” - after the Renaissance creativity in 15th Century Italy that followed the funding by the Medici banking family. Examples he cites in his book include - Evolutionary biologist Richard Dawkins finding an intersection point when he connected the field of genetic evolution with that of cultural evolution - suggesting that ideas - the building blocks of our culture evolve and propagate like genes. He called these building blocks “memes” and that notion is today the base for marketing strategies seeking to ignite fads that might spread like viruses through a population of minds.

The book is a helpful reminder of the brilliant work of Edward de Bono which reinforces the importance of thinking from different perspectives in striving to solve a problem. The value of divergent thinking and a strong willingness to break down associative barriers - reverse assumptions - and allow your mind to view a situation from a completely different perspective - clearing the path to an intersection are critical leadership skills for executives to master to be successful in the idea economy.

The most competitive advantage will be driven from the collaborative capabilities of a organization’s workforce to over come the difficulty of mobilizing new ideas and taking the risks to help ensure they are successful.

The power of new ideas to drive a business forward have been referred to as “lightening in a bottle”by David Minter and Michael Reid in their book on innovation generation capabilities. They look at how to develop ideas for new products, services and market programs. I did not find any major new insights in reading this book but it did serve as a strong affirmation of wise perspectives. Practical insights like - Less Ideas are More - the point being large organizations can only execute a few large change initiatives at a time, and for smaller organizations - going beyond one can be a major risk given scarce resources. Less People is More - Focusing talent to go from concept to execution without complexity is a key message and from my own experiences in complex change programs - less is for sure more. The other reminder is Less Words is More — Shooting for the Post it Size ideas - short and simple with three second messaging - is a good tenant but at the same time - dumbing things down to such a low level message may also not stir the soul. There is always a balance - but getting the order to being to execute a new idea is always the prize we are striving for.

In summary, Great Ideas Meet Great Ideas at the place most cannot see the new pattern. This is why the power of disruptive innovation is so top of mind to CEO’s around the world. Unfortunately innovation is not something that can be bottled up, or found in how to cook books — more organizations need to focus on the health of their organizational culture which is the soul bed of nurturing curiousity, taking risks, and appreciating diversity in all its rich forms.

Innovation Farming is a lot of very hard work and it simply starts with sowing great talent and helping them all strive to be the best they can truly be.


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May 2nd, 2007

Customer Centricity - Innovation Approaches at Best Buy

Service Experience is King in the insatiable customer experience economy. The days of Big Box Retailing are Dead. The new war for acquisition and retention is service innovation.

Best Buy, one of the industry’s leading electronic retailers - has a new strategy coined, “Customer Centricity,” where a geek squad of technology literate staff help consumers select optimal solutions to meet their computer or home needs. They have shamelessly borrowed WalMart’s door greeting strategy and have Best Buy greeters bearing friendly smiles at each of their 800 stores -with a simple greeting of “How is it Going?, Welcome to Best Buy.”

Best Buy earned US $763M or US$1.55 per share during Q1, 2007 up from US $644M a year earlier. Revenue has risen by twenty one percent to US $12.9B.

Retailers are an extremely competitive environment and for companies to grow competitively; they have to control their costs. The growth in retailing must be squarely focused on the customer experience.One interesting fact that still has me shaking my head as a business strategist - is that Best Buy Store designs are still set up for male shoppers - when the market’s buying power has shifed to eighty percent of home electronic buying designs are made by women. Floor layouts, color schemes at Best Buy are not visually attractive to women buyers and leveraging the customer centric experience to harness this buying power is currently a missed opportunity.

So what can Best Buy Do to be more customer centric?

1.) Explore using View 22, a leading provider of 3D Web Commerce and media solutions which are creating rich customer experiences using interactive web solutions to enable customers to visualize, configure and purchase products through an intuitive and unique online experience. Companies using these advanced experience economy like solutions include: GE, Kohler, John Deere etc.

2.) Leverage Narrative Inquiry (Story Telling) Customer Research insight techniques that have less market researcher bias than traditional market research methods. Helix Commerce, our firm, has partnered with Cognitive Edge to bring to market advanced innovation solutions to enrich customer intelligence to identify customer needs, wants, behaviours and seek insights that are complex to easily detect. These methods are also more effective at identifying disruptive innovation patterns that more traditional market research methods.

3.) Provide Knowledgeable Gurus - that are experts in interior design with different expertise domains - eg: Vintage, Classic, French Country, Art Deco, etc. and set up online access to design libraries integrated into a collaborative community where customers can easily select models and contribute models to create an ongoing customer community.There is no end of possibilities when capturing the wisdom of the customer as a community to share best design ideas and create an ongoing forum for customer intelligence dialogue.

In summary, the service experience economy in every industry continues to take on heightened creativity in the war for winning the customer’s wallet and more importantly now their hearts. The next generation of customer centricity stickiness will be at the emotional and relationship level as value continues to shift to the service experience value proposition. Best Buy may currently number one - but the opportunities for companies like Circuit City, Future Shop, etc will be in differentiating themselves on the service experience. There is still room for more innovation in this market - imagine Disney and Best Buy creating new purchasing experiences or Best Buy teaming with IDEA to develop future store designs….there is no end of creative possibilities - other than simply stopping and thinking outside the box.

For more innovation on Helix’s innovation services, please contact us at info@helixcommerce.com. Dr. Cindy Gordon can be reached at cindy@helixcommerce.com. Helix has helped companies like: Bell Canada, Microsoft, RBC, Rogers, SAP, Siemens, Xerox and many others look at their current go to market capabilities and envision new possibilities.



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