Keynote Address- Innovation or Science Fiction?
April 27th, 2008In my keynote address at the Human Factors in Telecommunications conference in March, the audience and I asked and answered the question “how do some teams achieve innovation, while others do not?” Because the term “innovation” is overused, we defined what it is, and its value, by looking at the biggest innovations in telecom over the past 20 years. We then talked about the ten principles that promote invention.
Just 20 years ago, the average person used a desk phone to communicate real-time. We geeks can remember using terminal windows with Telnet, FTP, and SMTP. Could we have envisioned a mobile phone at the time? Maybe. Could we have envisioned one with GPS and driving directions? That was the stuff of Star Trek!
Look at a couple more innovations: The iPod with iTunes and the browser (Firefox). Apple is now the #1 distributor of music in the world! Without a browser, you wouldn’t be viewing this blog entry, and the world-wide web wouldn’t exist. These innovations changed market dynamics.
Geoffrey Moore calls this “disruptive innovation” in his book Dealing with Darwin. Companies can—and need to—differentiate themselves with disruptive ideas. These inventions increase revenue, stock price, long-term value, and success. Disruptive innovation is the killer app that drives dramatic revenue increases.
What kind of environment stimulates such innovation though? For the most part, innovations fill a personal or social gap. This isn’t all, of course, but it is fundamental. Multiprotocol routers were developed at Stanford—in a playground—to connect people. Digital Communities (Facebook and twitter) were invented because somebody said “I’d like to connect with my friends and stay connected whenever I want.” I contend that innovations happen in a playground when teams are given room to play, to invent.
Even for those innovations that did happen in large companies, the inventors were often small, highly autonomous units. In many cases, the inventors spun off from a corporation so they could innovate, and were re-acquired by the company (Cisco has done this a number of times). So, if innovation happens in a playground, how can you stimulate this kind of playground in your company? We talked about ten attributes that stimulate such an environment, and I’ll talk about two here.
At Yahoo!, we spend time dedicated to innovating. We go offsite for a week in Yahoo! Design Labs (YoDeLs), which were introduced by Heather Cassano and Jill Strawbridge. In short, designers, researchers, engineers, product managers, and more bring their research and perspectives, and we come out aligned around great ideas, so we can implement them rapidly. In the next several months though you’ll see some market-changing ideas, largely because of these practices.
But talking about and practicing innovation are very different. Understanding how to create a culture of innovation, involving cross-functional teams in the right way, driving effective process, and maneuvering the politics of innovation, all require experience. I’m thinking of holding a course at CHI2009 about the ten attributes required to stimulate innovation. I’d love your thoughts: Would this be useful?