Friday, September 21, 2012

Blog I: The Brain, Creativity & Innovation

Your Boring Brain

Close your eyes and imagine yourself sitting in a classroom. Now, close your eyes and imagine yourself standing on the surface of the moon. Why is it more difficult to imagine the moon scenario? It’s because your brain is a lazy piece of meat.

While complex, the human brain can be “broken down” into four major functions: sense, process, store and act. The brain uses our sensory organs (eyes, ears, nose, etcetera) to help us create an internal representation – or, more simply, a memory - of the external world. Once our experiences are translated into neurons, the brain begins to process these incoming signals, called afferents. The brain categorizes each incoming afferent based on previously stored information. For instance, war veterans may be severely startled by a car backfire or firecracker due to their memories of warfare. Finally, once these afferents are processed, the brain reacts accordingly through actions called efferents. From the previous example, the war veteran may drop to the ground in the event of a car backfire as he would in the event of enemy fire. [1]

So, what makes your brain lazy? It always takes the path of least resistance. Because the brain is efficient, it uses past experiences to shape your perception of new ones. For this reason, it is much easier to close your eyes and imagine sitting inside a classroom – something you’ve experienced before - than it is to imagine standing on the surface of the moon.

Imagination is essentially perception in reverse i.e. it forces your brain to go against its experience-dependent categorization process. There is a class of people who, for whatever reason, seem to see and perceive things differently than most e.g. Walt Disney and Steve Jobs. These “iconoclasts” do not give into their brains laziness and instead are imaginative in all their endeavors. [2] In order to stimulate the systems that allow for imagination, the rest of us need a novel stimulus. Whether it is new information or an unfamiliar environment, a novel stimulus allows individuals to think outside the box by simply stepping outside of it. [3] For example, artist Dale Chihuly became world renowned only after losing an eye in a car accident – a tragedy that forced him to see the world from an angle most cannot. Similarly, it took a car crash – and a broken jaw – for Kanye West to become one of the world’s most famous hip hop artists.

Inventions vs. Innovations

Let’s go back to those iconoclasts mentioned earlier. Were Walt Disney and Steve Jobs famous simply for their ideas? No. Walt Disney and Steve Jobs were more than thinkers, more than inventors – they were innovators.

It’s important to note that while the term innovation implies the creation of something new, it is not synonymous with invention. While invention is the first occurrence of an idea for a new product or process, innovation is the first implementation of the idea. Successful innovators are distinguished from inventors in that they have commercialized an idea rather than simply construing it.

Many inventors have failed to commercialize their idea due to unsustainable business models, exaggerated demand, disconnected value chains, etcetera. Innovators, on the other hand, can revolutionize markets with even the least inventive products. Steve Jobs, for example, achieved great success with his iPod despite the number of MP3 players that existed on the market before it. Jobs didn’t invent the MP3 player. It was the aesthetic, ergonomic, and utilitarian aspects of his iPod that drove its success. Invention, therefore, is not required for innovation but can contribute to it. [4]

Types of Innovation

There are two major definitions of innovation. Some assert that innovation refers to the idea and its introduction to the market, while others suggest the innovation lies in its implementation in the market. While the latter tends to be more widely accepted, keep both definitions in mind as we discuss the various categories and types of innovation in this section. There are two major categories of innovation with which everyone should be familiar: sustaining and disruptive innovations. Sustaining innovations can be either incremental or radical.

The majority of innovations are defined as incremental. This term is used to describe modest changes to existing products or services. For example, while GPS was originally created for use by the army, it has been adapted to function in cars and on smartphones. A radical innovation is one that uses new knowledge, resources and technologies to offer an even more improved product or service to the market. Netflix’s online streaming service, for example, is a radical innovation to the entertainment market.

Disruptive innovations are once-radical innovations that have since rendered existing products or services non-competitive or obsolete (see figure below). The cassette tape, for example, was a disruptive innovation that made records obsolete. Compact discs later disrupted the cassette industry. Eventually, MP3 players will render compact discs entirely obsolete and thus be considered a disruptive innovation.

[5]

Innovation and Business

As made evident in the previous section, innovation is key to becoming a competitive player in global markets. As a result, consulting firms often have entire departments focused on innovation strategy. In 2007, Doblin became a part of the global strategy firm, Monitor Group. Doblin helps its clients to improve their competitive advantage by innovating across all aspects of their enterprises. Doblin developed a framework, used by industry leaders across the globe, of the Ten Types of Innovation most integral to improving competitive advantage.

Type of Innovation
Definition
Industry Example
Profit model
The manner in which the company generates income.
Skype’s “freemium” model
Network
The company’s value chain.
“The Shops” at Target
Structure
The company’s human capital.
The Whole Foods Team
Process
The company’s strategy.
Zara’s “fast fashion” strategy
Product performance
The distinguishing features of the company’s product.
Ferrari’s commitment to excellence
Product system
Complementary products offered alongside the company’s product.
Apple’s App Store
Service
Services offered alongside the company’s product(s).
Zappos’ WOW service
Channel
The manners in which the company gets it product(s) to its customers.
Starbucks’ Gold members
Brand
Representation of the company.
Virgin
Customer engagement
Interactions between the company and its customers.
Microsoft’s Help Center

While most would assume the product performance and service aspects of the company are most in need of innovation, Doblin asserts otherwise; according to this innovation strategy giant, innovating the profit model and customer engagement aspects of the company are most conducive to a higher return on investment.

As mentioned before, many global industry leaders are pushing their employees to introduce innovative approaches to the manner in which they do business. But the question remains – can anyone innovate? Can you innovate? In order to assess whether you’re capable, it is critical to understand your core attributes – your behaviors, motivators and competencies - and how they might contribute to the innovation process. Are you analytical? Versatile? Collaborative? Are you motivated by the process or the result? Can you problem solve? Are you organized?

While we may not all be born with “it,” as were the iconoclastic Walt Disney and Steve Jobs, we all have particular attributes that can contribute to the innovation process – it’s just a matter of harnessing them.

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