Prophet of Innovation

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I haven’t posted anything about innovation in the last week or so because I’ve been busy making my way through the wonderful pages of Prophet of Innovation: Joseph Schumpeter and Creative Destruction

Penned by Harvard Business School’s Thomas K. McCraw, Prophet of Innovation is an entrancing look at Schumpeter’s life and work.  I’m less than a third of the way though its 736 pages, and I’ve already learned a great deal about this subject innovation which is so dear to my heart.  It’s Schumpeter who lent shape to many of the ideas, constructs — even a worldview — which inform life here in Silicon Valley, as well as in any economic system where advancement is valued more than stability. 

I’ve been hearing from a lot of folks that this "innovation thing" has peaked.  As a fad, perhaps.  But as a way of seeing the world, let alone a pragmatic way to improve the quality of life on this planet, innovation is much more than just the hottest management trend.  What Schumpeter saw 90-odd years ago is still in force today, and though context may change, I believe he uncovered some basic truths about the way that macro and micro economic policies can create a fertile field for innovative behavior to flourish.

I love this book.

Making meaning at Le Mans

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The 24 Hours of Le Mans race is on!  If you’re a motorsports fan, it doesn’t get much better than the complex brew of strategy, technology, and teamwork necessary to win a day-long endurance race.  It’s fascinating stuff — Le Mans is to auto racing fan what Wagner’s Ring Cycle is to opera buffs.

Le Mans is still relevant even if you loathe racing.  Last year Audi made history by winning the race with leading-edge diesel technology, a racing first.  This year Peugeot joins the diesel fray with their wicked-looking 908.  Diesel is not the ultimate answer to the environmental challenges facing us today, but it is a more efficient alternative to traditional gasoline technology.  What Audi and Peugeot are doing at Le Mans is all about creating a more attractive story around clean diesel motors so that they become more desirable to the general populace.  It’s a good example of trying to make green more red.

Words to live by

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John Lilly, the COO of Mozilla and a guy I’m proud to count as a friend a collaborator, has written what I think is an incredibly insightful and important statement about how the world works today.  Writing in response to a recent speech given by Steve Jobs indicating that the future of the browser market could look like the pie chart shown above, John says (in part — please read his entire post if you have a chance):

There are a couple of problems, of course. The first is that this
isn’t really how the world is. The second is that, irrespective of
Firefox, this isn’t how the world should be.

First, it isn’t really how the world is. The meteoric rise of Wikipedia, Creative Commons, Linux and Firefox,
among many other examples, shows that today’s connected world is no
longer constrained by the monopolies and duopolies and cartels of
yesterday’s distribution — of the publishers, studios, and OS vendors.
Hundreds of millions of users, in every language around the world are
now making new choices. That Apple doesn’t feel this, even within the
familiar reality-distortion-field confines of Moscone Center,
illustrates much of the problem.

Second, it isn’t how the world should be. Even if we could somehow
put that movement back in the bottle — that a world of just Starbucks
& Peets, just Wal-mart & Target, just Ford & GM — that a
world of tight control from a few companies is good, it’s the wrong
thing to do. It destroys participation, it destroys engagement, it
destroys self-determination. And, ultimately, it wrecks the quality of
the end-user experience, too. Remember (or heard about) when you had to
get your phone from AT&T? Good times.

So here’s my point, to be clear: another browser being available to
more people is good. I’m glad that Safari will be another option for
users. (Watch for the Linux port Real Soon Now.) We’ve never ever at
Mozilla said that we care about Firefox market share at the expense of
our more important goal: to keep the web open and a public resource.
The web belongs to people, not companies.

This world view that Steve gave a glimpse into betrays their
thinking: it’s out-of-date, corporate-controlled, duopoly-oriented,
not-the-web thinking.

John is right.  This isn’t 1957.  What’s good for GM, or Apple, or Microsoft, isn’t necessarily good for all the rest of us formerly known as the audience.  If you believe in starting with the needs and desires of real people as a way to create real value and meaning in the world, then things like engagement and choice and self-determination are not just "nice to haves", but are critical means to an end, where the end is an informed, savvy, and free (as in liberty, not price) society.  As John says, "The web belongs to people, not companies."  Markets do, too.  So do brands. 

Web thinking is freedom thinking.  And it is the driver of modern, progressive marketing.

Meine erste Million

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I recently wrote a brief essay on the subject of "Der wird Millionar" for the Folio magazine of the Swiss newspaper Neue Zurcher Zeitung.  I talked about the design of the Toyota Prius — I’ve been thinking a lot about the Prius lately — and, more broadly, on the topic of how green products need to become much more red.  In essence, on what I believe is the critical importance of understanding what makes for unabashed gearhead gnarlyness and then building that sensibility in to green market offerings.

The essay is available here.  I wrote in English, but I think it sounds cooler in German.

Be sure to check out all the other "Der wird Millionar" essays in the issue by this amazing group of thinkers and doers:

Why Ivy Ross rules

Amdextrous Magazine recently ran a wonderful interview with Ivy Ross.  The interview was done by Alison King, and I find it simply stunning.  I’ve read it many times over, and I hope you find it as interesting as I have.  Here are a few fascinating excerpts.

On the importance of meaning:

Let’s face it.  Everyone has everything.  We are not about price anymore.  Everything exists at every price level.  It’s about the connection you find with the object.

On the power of unleashing your personal design thinking process:

I had to think about my own creative process.  What I did for myself was feed myself.  I took on a question and ate absolutely everything I could.  I allowed myself freedom to explore, without restrictions, and at a really organic pace.  I was like a kid.

On the drivers of innovative behavior:

I also believe that creativity and innovation are built around trust and freedom.  Companies don’t get that.  They think it is a process.  It is really about creating trust between the people creating and the freedom to go to new places.

Go ahead, and download this PDF of the interview and give it a read.  You won’t be disappointed.

More news from the world of CIA-KGB

Dennis Whittle, the Chairman and CEO of Global Giving, is blogging about the student projects which were launched a few days ago in my CIA-KGB class at the Stanford d.school.  The class project ended up being a good experience because Dennis and many others from Global Giving gave an enormous amount of their time to help support the students in their work to create infectious action around the idea of social entrepreneurship in general, and Global Giving in particular.  Here’s an excerpt from his blog:

I was absolutely stunned by what each [group] could deliver in such as short period.

I was, too.  And since I think innovation only happens when real change is made in the world, I’m looking forward to seeing the impact of the six student projects over the next few months.  Here’s the first of Dennis’s posts on the class: 

You did THAT in FOUR weeks?

Rewarding brand-building behavior, feeding infectious action

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I’ve written before about the problems that speeding hybrid owners might pose for the Prius brand.

So, in the metacool spirit of seeking generative and productive solutions, how might Toyota incent Prius owners to behave in ways that enhance the brand?  I’ve been mulling over that question for a few months now, but over the weekend I spied the license plate pictured above in a local Whole Foods (no surprise there) parking lot, and it sparked a brainstorm of sorts:

  1. Per the photo above, reimburse any owner who slaps an appropriately-themed custom license plate on a Prius.
  2. For those short on imagination, provide a web-based green-jingle license plate character generator over at www.prius.com
  3. Parking these things at Whole Foods is preaching to the converted.  Better to try and infect new communities, so hand out shopping coupons for Wal-Mart, Safeway, etc… to owners who do the license plate thing.
  4. On the other hand, ego-gratification is a big driver of community-based marketing, so do a deal with Whole Foods whereby a highly visible parking spot near the front of the store is reserved for Prius owners who’ve done the license plate thing.  Which brings me to idea Number 5.
  5. Issue owners who’ve done the Prius license plate thing a nice holographic-looking window sticker which says "Prius Maven Onboard".  It’s designed to sit inside the left corner of the vertical hatchback window, and is the cue to Whole Foods parking lot attendants not to tow your Prius from the designated Prius Maven parking spot.
  6. Make the green color scheme free.  Charge extra for all the other colors.  Charge much, much more for black paint, which lowers the albedo of the Earth.
  7. Better yet, paint the roof of every Prius white.  The better to bounce sun rays back and reduce the air conditioning load.  Plus, white roofs are in.  Critically, tell owners why the roof on their car is white (even if they paid $2,000 extra for black paint), so that they can educate their friends about the concept of albedo.
  8. Provide a $1,000 rebate to any Prius owner who agrees to have a speed-limiter placed on the car.  This device would limit the top speed to 75 mph, because drag increases with the square of velocity, and if you want to save the planet, it helps to not drive though it like hell.
  9. Sell the Prius as a service.  If I’m a Prius Maven, I’m not buying a car — I’m investing in a public confirmation and signal of my worldview.  What if Toyota could make the entire Prius brand cradle-to-cradle by maintaining it and taking it back in a completely holistic way?
  10. Create a Garage Lifestyle Bounty.  If you trade in your H2 for a Prius, you get acclaim on a public website, and you get a license plate frame, like "My old ride was a Hummer"

This is just a brainstorm.  But increasingly I believe that word of mouth and infectious action is like a garden.  A garden will grow on its own, certainly.  But with inputs of energy and care, it grows that much better.  The Prius has already tipped — when you think "hybrid" you think Prius.  But even companies like Toyota should think about ways to actively tend and feed the garden.

Unabashed Gearhead Gnarlyness

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The Audi RS4, as piloted by one David E. Davis, Jr., along the beautiful string of roads which make up the California Mille.  In my book, Mr. Davis is the biggest voice to hit American literature since Twain, or Hemingway — or perhaps even both — and here he takes us on a wonderful video journey about cars, landscape, friendship, and memories of winding roads and the cars that need them.  As you hear him playing that sonorous V-8 up through the gears, it’s hard to disagree with his belief that "… God does not charge us for hours spent driving before breakfast."

Myself, I quite fancy the RS4.  It’s one amazing piece of engineering.  A bit thirsty and heavy, yes, but if thought of as a four-door 911, it makes more sense.

But forget Porsche.  Audi is the new BMW.  Close the cubicle door, turn up the volume on your laptop, watch DED, Jr. drive those roads again, and you’ll see why I think that’s the case.  Audi is on fire.

Winding Road video:  2007 California Mille, June 2007