Tag Archive for 'Innovation'

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The Wizards of Oz

The Internet has enabled a new world-order, causing people from the CEO down in almost every industry, an amazing amount of grief. The music industry, the newspaper industry, the telecommunications industry – heck, even tangible non-digital products like books – have been challenged at the core. However what these CEO’s have begun to realise, is that the Digital Age is no longer a threat, but a vehicle for growth.

Innovation is a key source of competitive advantage. And if you are an established company, innovation is hard. What takes six months of trying to convince the right people, jumping through hoops to keep internal stakeholders happy, and then finally releasing a half-baked product that is dramatically cut down from your vision – could be done by a bunch of college students in a garage over a weekend. Economies of scale is no longer an advantage in the Information Age – small, agile teams are.

In America – Google, Yahoo, Microsoft, News Corp, IAC and the rest – rely on acquisitions to fuel their innovation. An amazing amount of innovation is occurring on the web at the moment – not just new products but new business models. And the above mentioned companies have realised that acquiring a start-up early on, is a cheap way to innovate – as well as a great way to recruit.
But what about Australia?

Like America, we have a strong Internet industry with some clever entrepreneurs. But unlike America – no one is acquiring them. Could it be executives of this country’s leading companies just don’t know how much talent is available onshore? Well working in a professional services company that advises these companies, I am sure of it. Even a tech-savvy person like me is still discovering the amazing amount of talent and potential in my city, let alone country.

So here is to educating – both you and me – as I begin to start profiling innovation in Australia To make a suggestion for me to review on my blog, post it here

Have you tried to implement enterprise blogging?

Martianus: Hey guys, I think the earth goes around the sun.

Establishment: Don’t be ridiculous – everything revolves around the earth. Your idea sucks. Get back to work and let us take care of astrology, because we know best.

Nicholas: Dudes – seriously. It doesn’t make sense. Why don’t we take a different approach?

Establishment (between themselves): We’ve got a problem. These kids think that the earth moves and goes around the sun – as if someone was sitting in a car still, and the earth and trees walked and moved! Ridiculous!

Galileo: Hey I’ve been speaking to a lot of people, and everyone reckons the earth orbits the sun. It’s so painfully obvious. Can we please update our textbooks?

Establishment: Excuse me? Have you not looked at Psalm 93:1, Psalm 96:10, and Chronicles 16:30 that state “the world is firmly established, it cannot be moved.” It’s how we’ve always said it. We can’t let you challenge the Holy Book. The Holy Book is law, and only we can interpret it.

Galileo: What’s the big deal? I mean, I’m just saying something that makes sense. Look – everyone else is saying it. It’s not like I’m suggesting we need to implement blogging within our enterprise, to unlock our potential. Now that would be ridiculous!

Establishment: Listen – there is no point changing our world view. If we started telling people that, could you imagine? A famine would start, and nineteen percent of people would get a heart-attack because of the dangers of thinking like that – we can’t take that risk. The father almighty in his wrath would shake our flat earth, and ruin our existence. Even if it were true, why change? It’s not like it would make any difference. Now scram.

Galileo: You guys don’t get it – it could really help people, and it’s not a big deal. I can’t believe the fuss.

Establishment (between themselves): I don’t get what this kid is on. Let go and tell his superiors to have a word with him. We can’t have this type of thing happening again.

Two hundred years later
Establishment: Yes thank you – we are the pioneers. Our team took some risky moves to experiment with a new way of doing things early on – we often forget that it was us, the establishment, that started all this. If it wasn’t for us realising things needed to change, so much innovation would never have occurred. Just think – Einstein never would have worked out the theory of relativity. Thank God for the establishment and the foresight we continue to have this day.

Grand thinking requires space, flexibility and time.

Grand thinking requires space, flexibility and time.” Our fast-paced life has forgotten that reflection is a very important concept for not just quality in our work, self-improvement, and ultimately innovation – but also for our health.

More people need realise that a person has to slow down, if they want to go further. Having said that though, if “thinking” is so easy – why don’t we have more great ideas? The quiet engine of the mind works just as hard – people just don’t recognise the effort being expended because you’re not sweating.

How to become the next Google

During the industrial age, information was a scarce commodity. The flow of information was controlled by the mass media – books, newspapers, television – were the sole distributors of information. The media during this age had a huge influence on society because the mass media was effectively the "gatekeeper" of information in society. Supply, or rather the distribution-capacity to supply information, was limited.

Criticism of these gatekeepers occurred for their power on what information they distributed, a thing the internet changed. We now live in the Information Age, which has come on the back of the internet. This has opened up the distribution points of information ?¢‚Ǩ‚Äú access to information is no longer dependent on the mass media – and availability is no longer confined by physical constraints (the internet has potentially an infinite storage). No longer do the traditional gatekeepers control the flow of and access to information.

The consequence of losing the old gatekeepers is that information is now plenty and consumers face information overload. Due to an environment of limited distribution in the Industrial Age, the mass media by consequence filtered information for consumers. Now with infinite information available, consumers are finding it difficult to filter information: identifying quality information was a role that wasn’t totally appreciated before. The cost of consuming quality information is being bourne by the consumer, as they are forced to identify it themselves.

The attention economy has risen as an important factor, as consumers only have limited attention to view the now unlimited amount of information. The new scarce commodity is no longer information, but the attention of consumers. Demand for information is now limited – people only have so much time to sift through the abundance of information.

Why search and aggregation services are valuable to consumers
The 1990s saw the development of search engines as a solution to this problem. Search engines have now become the new gatekeepers of information, as they provide consumers a means of filtering information and returning only what is relevant. Search works as a filtering system because consumers identify what they want, and a search engine simply needs to associate pre-indexed information that best matches that request. Innovation in search is about increasing the relevance of information to that request.

Other technologies have also been developed, which allow for the filtering of information. "Aggregation" services similar in role to what newspapers for example traditionally did – help pull together information from disparate sources. The value of these aggregation services, is in the value of relevant information to the consumer – a similar scenario to search. Search engines help consumers pull information; aggregation services push information, with what they think a consumer would want.

With both these "pull" and "push" technologies, consumers are reverting back to an industrial age concept of trust in brands. Google’s search for example, has impressive technology. But so do its rivals. User experience aside, the biggest advantage Google has is that users trust its brand more for the quality of information provided. Users trust Google to provide more relevant information – relevance is quality. The same reason why consumers used to trust a broadsheet newspaper over a student newspaper, is in the credibility of that brand to provide quality. The brand was and still is a way for consumers to filter information – or rather, trust others to provide information they can rely on.

The future

If you are looking to start a new search engine that will beat Google: don’t. If you think you have a brand new of way identifying quality information: spend your efforts there. Remember the reason why search, RSS, and profiling aggregators are important to consumers, is because they help them find the best quality information, in the shortest period of time.

You can’t beat Google at search. And if you do, by the time you do, it will be a waste of time because the industry will have evolved. Innovation on the internet and the Information Age, is about understanding why the traditional gate keepers were so effective in what they did. The last decade has seen some clever innovation – but we still have a long way to go.

The reason for success on social networking sites

Friendster was the first site I noticed the “post a comment” feature now so prevalent on the social networking sites. I remember thinking it was a way for others to know what your reputation was (like eBay). Interesting, but no big deal I thought – I couldn’t imagine it being used that often.

Then MySpace came around.

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Building a (sustainable) business

One of the highlights at Bar camp Sydney, held on March 3rd 2007, was a presentation by Martin Wells and Mike Cannon-Brookes on “How to Start a company”. Both men have a lot of wisdom to share, which was worth every penny (no pun on the fact the event was free). However despite an awesome presentation that covered a lot of ground, there was one slide that in particular annoyed me. It bothered me so much that I wanted to say so, but I thought it might be better to let it be because the guys were doing an otherwise great job.

My problem was slide number two. It listed four companies as ‘ideal’ start-up businesses for all those in the room. Those companies were Flickr, Del.icio.us, YouTube, and MyBlogLog. Why I had a problem with that, was because if that is what web entrepreneurs are being told to look up to, then we have a bit of a problem.

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