Some time ago, Steve Jobs was quoted as saying, “Innovation distinguishes between a leader and a follower;” and that statement has never been more meaningful than it is today. At a time when the even the most fundamental elements of business success are being reevaluated and redefined, one thing becomes increasingly clear: innovation is no longer a “nice to have;” it’s a “must have.” It’s what we call The Innovation Imperative; if innovation distinguished between leaders and followers in the recent past, today it increasingly distinguishes between survivors and the barely breathing. Innovation is the new Darwinism in business; it’s no longer “survival of the fittest,” but “survival of the most innovative.”

The choice facing companies today is simple: innovate, or perish. Those that will survive today’s economic environment and succeed in tomorrow’s are those willing to continually reinvent themselves, their products, their brands, their processes-in short, the way they do business. Many organizations are even looking for innovative ways to innovate, replacing traditional brainstorming techniques with new, more inventive processes like SmartStorming and 3-D Ideation. Introduce the world to the new new thing, the bleeding edge technology, the better mousetrap, the reinvented paradigm and there’s a good bet you’ll remain ahead of the curve and be around to reap the rewards in the future.

The Innovators

The topic of innovation certainly isn’t new; it’s been the business buzz word for several years now. We’ve all read about it in business magazines and heard the reports on financial news stations. Harvard Business School professors lecture on it at conferences and scores of books address it. And the same companies are consistently held up as the elite innovators-Apple, Google, Nintendo, JetBlue, Toyota, Target (and today again, WalMart). And there are hundreds and even thousands more you’ve never heard of, visionary companies that are  seizing the opportunities (yes, opportunities) presented by the current economic phase, breaking the rules, establishing new standards, delivering incredible value, and  then starting that process all over again…and again, and again. These companies come in all shapes and sizes, and exist in every industry-technology, biotech, pharma, automotive, consumer packaged goods, retail, you name it, they’re out there, outthinking and outdoing everyone else in their fields. Whatever they’re playing field, they all have one thing in common: they innovate.

Three Not-So-Easy choices

Today, businesses face three choices. In many cases, none may be easy to make.

1. Actively innovate. Stay at the forefront of their industry and their competitive set, doing whatever it takes to meet constantly evolving market conditions and consumer demand.

2. React. Wait for others to set the standard and play catch-up, forever scrambling to match the latest development introduced by market leaders.

3. Do nothing. Stay right where they are, do their best to survive, and almost certainly stagnate, eventually drifting into irrelevance, and finally, extinction.

Innovate or perish.

Innovation of the Individual

By the way, the innovation imperative doesn’t only apply to businesses; it’s a challenge facing individuals, as well, again, even more so today. Each and every one of us who collects (or hopes to collect) a paycheck has at least one consumer, the person responsible for our professional future. Individual employees must also continually reassess their approach and establish their value, or face the same dismal fate as their corporate counterparts. In fact, while we are currently facing increasing jobless numbers, still more than 90% of the workforce remains employed. While in many cases circumstances beyond the control of the individual are responsible, what might that 10% do, innovatively, that could help them make it back into the 90%?

Work Your Innovation Chops

The time to develop an innovation orientation is not tomorrow or next week or in the third quarter. It’s now.

Begin actively searching for new, better, more productive ways of doing things. Utilize proven innovation tools-advanced ideation techniques, new technologies, breakthrough processes. Adopt an “innovation mindset,” asking yourself every day, “How could I do this better?” Turn yourself and your organization into an Innovation Machine. You will not only survive this evolutionary upheaval, you will thrive.

Here’s an excellent article by Jim Carroll concerning the opportunity for disruptive innovation provided by the current economy. This is related to our concept of The Innovation Imperative — the realization that those companies which will thrive in the future will be those who are the most innovative today. You can find the original post of Jim Carroll’s  article here: http://www.cognos.com/newsletter/decisions/st_090130_01.html .

Rethinking Innovation: Is now the time to forge ahead?

By Jim Carroll

Given the economic challenges that swirl around us and the rapidity with which the events of the fall of 2008 unfolded, a unique and challenging mindset seemed to quickly envelope many organizations: corporate idea factories were turned off, and innovation paralysis settled in.

The result is that we’re not just in an economic recession – we’re entering another idea recession, similar to what occurred with the last downturn starting in 2001.

Yet in allowing this to happen, many organizations are missing the fact that an economic downturn provides a great opportunity for innovation. After all, companies like Burger King, Microsoft, CNN and FedEx all started up during a recession.

Recession a perfect opportunity for “disruptive innovation”

In November 2008, right as events were at a fever pitch, Wharton Universities Innovation and Entrepreneurship group released a provocative article strongly suggesting that a recession provided the perfect timing for “disruptive innovation” – that is, stepping into an industry and rewriting the business model so as to achieve significant growth. Think of Steve Jobs and the iPod – which he first released during the recession of 2002.

So what do organizations need to do?

Move past the “shock” and “denial” phases

First, move to the “acceptance” stage earlier. I began to relate the fast-paced events of the last few months in the context of the “stages of economic grief,” an emotional reaction that seems closely related to the “stages of bereavement.

Events happened so fast that many organizations still find themselves in the “shock” and “denial” phase. They will be the innovation laggards, and will only be ready to innovate once the market and industry recovery is underway. However, that may be too late.

Then there are the innovation leaders who are prepared to innovate despite the uncertainty. They are prepared to keep their idea factory running – maybe not at full tilt – but running nevertheless.

These leaders know that despite the vast sections of the economy in stress, there are still plenty of opportunities for innovative thinking. They know there are still growth markets; and opportunities for marketplace, distribution channel, and operational innovation.

Innovation leaders are aware that ongoing change in consumer behavior also means that there continue to be new ways to brand, grab customer mindshare and forge unique and distinct relationships.

There are plenty of opportunities to turn ideas into innovation. It all depends on where you want to place yourself on the scale of the seven stages of economic grief.

Bold moves and integrated elements

The key decision is whether now is the time for innovation, and if so, how to move. It is critical that organizations begin to undertake a series of bold actions that re-orients them to face these future challenges. This series of actions should include several integrated elements:

• Undertake a regular number of experience-focused projects aimed at boosting the “experiential capital” of the organization.
• Identify specific areas of capability weakness, product line, skills or structure that should be addressed through specific.
• Articulate key opportunistic strategies through a variety of risk-oriented initiatives and align the organization to explore those strategies.

These actions should aim to develop needed capabilities and realign the corporate mindset away from the current risk-adverse culture towards re-orienting the organization for the future.

The greatest mistake that any organization can make right now is to avoid action. Inertia – real or implied – establishes a culture of inaction, and that can lead insurance organizations down another slippery slope.

Clearly, that’s why today, innovation isn’t an option, it’s critical – because it is the key method by which we can gain traction.

About the Author

Jim Carroll has proven himself as one of the world’s leading futurists, trends and innovation experts, with a client list that includes the Walt Disney Organization, Motorola, Nestle, the BBC and Caterpillar.

Jim is internationally recognized for his cutting-edge insight, having been named by BusinessWeek as one of four leading sources for insight into creativity and innovation. As an author, columnist, media commentator, and consultant, Jim is completely focused on creativity and innovation. His insights appear in his books Ready, Set, Done! How to Innovate When Faster is the New Fast and What I Learned From Frogs in Texas: Saving Your Skin with Forward Thinking Innovation.

You may already be familiar with Mind Mapping, an idea generation tool defined by Wikipedia as “…a diagram used to represent words, ideas, tasks, or other items linked to and arranged around a central key word or idea. Mind maps are used to generate, visualize, structure, and classify ideas, and as an aid in study, organization, problem solving, decision making, and writing.” Mind Maps of some sort or another have been around a long time; however, author Tony Buzan is credited with developing the well-known, modern approach.

Mind Mapping is an excellent group ideation technique, one of many we teach in our SmartStorming training. Specifically, it can help groups (and individuals, by the way) build directly and tangentially off of a given thought. The initial idea quickly leads to expanded concepts, or in totally new directions which can then be expanded themselves.

Obviously Mind Maps can be created by hand. But there are also quite a few software applications for Mind Mapping, which can also be used very successfully in a SmartStorming session. One very simple one is FreeMind, which is, in fact, FREE. You can download the software for both Windows and Mac here: http://freemind.sourceforge.net/wiki/index.php/Download. (Note: the program is Java-based. We have no association with the developers and make no claims as to the quality or value of the software.)

Here’s a brief video demo of the software.

[youtube=http://www.youtube.com/watch?v=RBHEg8nQsNI]

There’s a marketing trend we refer to as “Intersection Marketing.” The concept is based on the premise that if one observes life and lifestyles closely, you will notice “sweet spots” where a target audience’s everyday life intersects seamlessly with the ideal promotional opportunity or vehicle. Here is an example of innovative marketing that borders on the transcendent.

While watching President Obama’s news conference on the economy the other evening on CNN, I was struck by how powerfully the news organization used a word cloud to analyze the ideas, content and themes within Obama’s opening remarks.

Besides being a magnificent typographical work of art worthy of exhibition at MoMA, the Obama word cloud also served as catalyst for lively debates between moderators who exchanged viewpoints about the meaning and context implied by the size and weight of Obama’s words.

Word clouds, for those who are new to the word-mapping tool, are a poster-like visual representation highlighting the frequency with which a word appears in text (or spoken in a speech); the bigger the word in the cloud, the more times it appears in the text or speech.

“Keyword” clouds are used by web designers to display the content available on a site and quickly indicate the most popular areas based on frequency of visits; the bigger the keyword, the more people visited that area.

Word cloud technology is a relatively new tool for interpreting and understanding the world around us. There are countless applications for it in art & design, media, education and business. If you are doing something innovative with it, we want to know.

Word cloud based on Obama's Inaugural Address

Creating your own word cloud:

Words clouds aren’t difficult to learn to program. In fact, Wordle offers a simple and easy way to generate your own word cloud. All you need to do is cut and paste your text into the website… and it automatically generates a cloud from your content. It also allows you to customize your word cloud in a range of different colors, styles and layouts.

To date, 72% of those who have responded to our survey (see our first blog post dated March 19th) have responded that a typical brainstorming session in their organization is either “pretty much a waste of time,” or worse, “torture.”

We’re keeping the poll up indefinitely, so if you haven’t voted yet, please do.

In the meantime, why is it that so many people hate, dread or at the very least, feel ambivalent about brainstorms? What is it about the question, “Anybody got any ideas?” that makes the majority of brainstorm participants cringe?

In our own research, we find this to be a consistent response across industries. Virtually everyone seems to know that their approach to group idea generation is broken; but they haven’t a clue how to fix it.

One of the key issues is a lack of established process. Almost by definition, people believe that brainstorm sessions should be “loose.” Too much structure is certain to squash people’s natural creativity, right?

Wrong. All innovative thinking (creativity, lateral thinking, eureka moments, etc.) takes place within some sort of process.

The creative genius may appear undisciplined and totally random. But ask any one, and he or she will explain some sort of process — how they seed their thoughts with inspiration, how they set the stage for free association, how they separate the wheat from the chaff, how they develop and expand upon their fledgling ideas. And that’s just a single person, a solitary mind struggling against itself. Put ten such individuals into a room, and the need for a process is even greater. It is naive to think that a group of individuals can effortlessly flow through the process of idea generation and development without some sort of process or structure to guide them.

Big egos, crippling insecurities, peer pressure, intimidation by senior staffers, shyness, arrogance, fatigue, lack of understanding, too much caffeine, Blackberries and iPhones, last night’s outstanding episode of Mad Men — a thousand different things can turn the best-intentioned brainstorm into a waste of time for participants and a waste of resources for an organization. At their worst, poorly structured and facilitated brainstorm sessions are completely demoralizing and produce no worthwhile concepts.

So what’s the answer? How can you transform your organization’s ability to generate fresh, innovative ideas, efficiently and consistently, and maybe even enjoy the process?

First, plan your brainstorming sessions ahead of time, establish a process, create ground rules for participants, and stick with them.

Second, make sure that anyone running sessions knows and understands the process, and applies it consistently. The best process is worthless if it isn’t applied.

Finally, educate yourself on the processes, techniques and approaches developed by others. A lot of experienced people have spent a lot of time considering this topic, and developing, testing and implementing systems that work. SmartStorming, of course, is one. (Our favorite!)

Innovation and the ability to think and act creatively is crucial to any organization, and particularly in today’s unsettled environment. Brainstorms should not be treated as casual, unimportant events. They represent an opportunity for your group to move the organization forward.

Now, have you got any ideas?

Whether or not you believe BMW defines innovation, this is a very cool look at a very innovative artist.

BMW South Africa: Defining Innovation

“When will things be back to normal?”

“What will it take to turn things around?”

“When the ‘recovery’ begins, will we be ready?”

Common questions these days. We all want to believe that  things will be “good” again, the way they used to be, when we all (or at least most of us) had our jobs and credit flowed freely and real estate was a surefire investment. People actually bought things, all kinds of things, and for the most part we felt reasonably secure.

But rather than, “How do we get back to where we came from?” perhaps a more valuable question to ask is “Where do we go from here?”

At lunch today with a senior executive from a top TV network, we discussed this very topic. So many people out of work. What jobs will they go ‘back’ to? So many organizations changing the way they do business. What will business look like in the year ahead? To assume that tomorrow’s landscape of opportunity will bear any more than a remote resemblance to that of the past is simply naive. Many of those who are currently displaced will never return to their former positions. Many business sectors that once flourished will never recover, or will at least remain out of favor for a very long time. Even real estate, as an investment, will be reconsidered.

The motivational book, Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life (possibly the most I ever paid per word for a book in my life) took a somewhat whimsical look at this very issue — over a decade ago, when the last bubble was preparing to burst, the Internet bubble. The fabled mice that ultimately survived the much maligned cheese removal eleven years ago are the same variety who will flourish in 2009 and beyond.

The innovative ones.

Adaptability is a form of innovative thinking. (I’m sure this will be covered  in greater detail in a future post.) It requires creativity, flexibility and the ability unhook oneself from the past. In order to innovatively adapt, one must operate from a perspective of possibility rather than limitation: explore the potential in a given circumstance, rather than focus on the challenges.

I sometimes think this way about my hometown of New Orleans. Katrina was the cataclysmic event that transformed the city forever. People talk of it “coming back;” but it never will, at least not in the way we think of coming back. It will be something different, maybe “better,” maybe “worse.” It will retain some of the beauty and personality and characteristics of its former self, and take on other entirely new attributes. The city and those in it will innovatively adapt.

The world around us is no different.

Be innovative. Work within the context of your environment and the opportunities it presents. And when things “come back,” wherever they come back to, you’ll be right there with them.

A recent news release on SmartStorming.

Companies In Need Of Innovative Thinking Are Turning To Smartstorming®

The word “Innovation” has earned the dubious distinction of  being one of the most overused and misunderstood concepts in business. Today’s tumultuous economic climate has sent companies across the globe scrambling to decipher the secrets of Innovation and to find ways to quickly download it throughout their organizations. Innovation fever is everywhere.

In the corporate gold rush to innovate, it appears that few, if anyone (including no doubt the vast majority of CEOs and senior managers) are pausing long enough to comprehend what the word “Innovation” actually means? A common misperception is that it simply refers to the process of turning a new idea into a successful commercial outcome.

So, what exactly is “Innovation”?

Unfortunately, there is no simple, one-size-fits-all definition that clearly explains it. In fact, most traditional definitions of the word are shockingly vague. How vague? Take the Merriam-Webster dictionary, it defines “Innovation” simply as: “The introduction of something new; a new idea, method, or device.”

New idea = Innovation?

Clearly that definition is inadequate. There are millions of new ideas, methods and devices introduced each year… yet the marketplace deems only a small fraction of them “innovative.” In fact, the majority of new ideas end up forgotten, ignored or discarded.

If we keep searching, better definitions begin to arise. For instance, Wikipedia’s dictionary adds another dimension to the concept by stating that Innovation is: “The creation of new ideas or things; Forward looking; ahead of current thinking.”

New idea + Ahead of current thinking = Innovation?

While that sounds…well, more futuristic, on closer inspection it too falls short. Haven’t we had “forward looking” ideas about flying cars, 2-way video telephones and establishing colonies on the moon since the 1964-65 World’s Fair? So we must add “doable/viable” to the equation. In the business world, that usually translates to “commercially viable.”

New idea + Ahead of current thinking + Doable/ Viable = Innovation?

Here we begin to see a more concrete description emerging. However, for an idea to be considered truly Innovative it must possess qualities that go beyond “new” (novelty), “ahead of current thinking” (vision) and viability (doable). There is a fourth essential quality that helps catapult one new idea, product, service, or process above all others in its class. A quality that infuses it with that game-changing competitive edge we call “Innovation.”

Australia’s leading innovation guru, Roger La Salle, helps provide an important insight into this fourth mysterious quality when he defines “Innovation” as…”Change that adds VALUE.”

The added value La Salle is referring to are those special attributes or benefits that make a new product, service or process: “faster,” “smarter,” “simpler,” “easier-to-use,” “more convenient,” “more powerful,” “longer-lasting,” “safer,” “better tasting,” “more comfortable,” “sleeker design,” “more efficient,” “more affordable,” “more satisfying,” “more exciting,” etc., etc. Added value is the quality that makes something unique and highly desirable.

New idea + Ahead of current thinking + Doable/ Viable + Adds greater value = Innovation!

If we put all these essential pieces together to create a simple, well-rounded definition to explain what Innovation is all about, it might sound something like this:

“Innovation: A compelling new idea that’s marketable and provides greater value than anything currently in its class/category.”

Once we gain a clearer understanding about what the word Innovation really implies, it doesn’t sound so mysterious, does it? In fact, when we get passed all the media hype and confusion, the Innovation process is really about the practical application of inspired creative thinking to create something better. A simple winning formula for success. Pass this understanding along to your CEO. Hey, you never know!