the absurd ideas….
In the words of Albert Einstein “ If at first, the idea is not absurd, there is no hope for it”. Absurdity as a measure of success may be an absurd notion but it seems to have made itself a necessity in the prevailing business environment.
Consider this — there are eighteen billion dollar companies that didn’t exist ten years ago, there are fifteen startups worth billions that didn’t exist five years ago. On the other hand, billion dollar corporations have lost valuation or have disappeared altogether. There is a sense of anxiety (among enterprises) caused by the persistent question of relevance. That said it’s not all gloom and doom. If business leaders give careful thought and leverage all ‘tools’ available to them they can ride the wave.
innovation a luxury? not!
Historically, innovation was considered a ‘sport’ for the ‘wealthy’ like that exquisite Lamborghini or Trevita. Businesses invested in technology to achieve efficiency and/ to cut costs but not to establish a definitive competitive edge. Additionally, businesses have tended to be risk averse in adopting new technology and have thereby slowed down innovation. We believe this is counter intuitive because if your very survival depended on innovating; fearing or resisting it makes your worst nightmare inevitable. Put another way, status quo is dearer than change and that’s our message to businesses and their leaders.
the ‘mood’ today…
Sociological and anthropological factors inform business strategy or they should anyway. It is no secret that understanding your customer demographic (read needs)is key to winning in the marketplace. I would go so far as to say that it’s the single most important element. To borrow a phrase from the very learned Descartes (and tweak it a little) — ‘I have customers, therefore I am’.
changing customer demographic…
The customer demographic is changing rapidly. In case you’re wondering, yes I am talking about the millennials. This is the generation that grew up with an overabundance of technology and is the present and the future. By 2025, within the next eight years, millennials will make up 75% of the workforce.
Here are a few stats on behavior that point to the ephemeral and hard to gain loyalty — 77% of the apps are deleted within first 72 hours of download. On average a worker changes 4 jobs by the time they turn 32. 35% of employed Millennials have started their own business on the side. 41% of Millennials have made a purchase using their smartphone. 48% of Millennials who say word-of-mouth influences their product purchases more than TV ads. Only 17% said a TV ad prompted them to buy.41% of millennials have no landline at home and rely on their cellphones for communication. Here’s my personal favorite — 92% believe business success should be measured by more than just profit.
Here’s one final stat and then I’ll stop because this one puts everything else into perspective — as of December of 2015, the millennial population had overtaken the baby boomers and by 2018, at $3.39 trillion, they will eclipse the Boomers in spending power. It will take a substantial change in mindset, tools, and technology to cater to this new audience with a largely different set of priorities and behaviors.
Now, if you’re still with me I’d like us to start “unpacking” some of this and start thinking about a response to this change.
the need of the hour ….a novel approach
Given the multitude of changes, technology and the way users interact with it has changed remarkably in terms of how users access tech(through handheld devices /on the go) and interact with it (voice interfaces).
Additionally, new business models that didn’t exist five years ago have become the norm, due in large part, to technology. It changes the way users buy and spend.
Who’s leading the charge…
This new wave of tech is being enabled and lead by start-ups who have been able to successfully unlock the power of technology rapidly. They’re not slowed down by inertia or drag.They’re tethered to one thing and one thing alone — the idea of imagining a different ‘world’ and building it using the enormous power of technology. This is especially true in the B2C segment. With B2B catching up fast.
Innovation as a Service
We think large businesses should not only care about the tech revolution but invest in it.But the challenge today, depending on who you are, or talk to, is one of three — catch up, stay ahead or lead thru disruption. When it comes to leveraging technology there will always be leaders, laggards, and others in between.That said, innovation doesn’t have to be hard.
So how do we bring that start-up innovation to large organizations? At 82ISM we believe innovation is an existential necessity. It doesn’t have to and shouldn’t be elusive so we’ve made it our mission to make it easy, elegant and ubiquitous by offering Innovation as a Service. Our Nirvana — make innovation a commodity without losing its novelty. How do we do that? We bring cutting edge start-ups, with a proven track record, from around the world, to your doorstep, through our marketplace. Our focus is on unmet customer needs, business problems and outcomes and making the ‘aspirational’; ‘approachable’ and ‘doable’ is where we help businesses. Think of us as your innovation lab that can execute your “wild” ideas without having to spend millions of dollars growing/incubating a start-up, creating an innovation lab with infinitely long wait times to MVP let alone a hardened enterprise grade solution.
This next section breaks down the process. Most of this is common sense, things you already know intuitively.It’s also core to our philosophy and informs our processes and methods.
Start Small — State Your Problem: Our engagement with you starts here. We don’t want you to spend millions of dollars on solutions you don’t need. We help identify what we’re ‘solving’ for and for what outcomes.
Start Small — Fail Fast: Fail fast is a term often bandied about recklessly. For us this means a few things first of which is containing risk and isolating change, thereby managing the cost of failure and second development in increments. In other words — managing the ‘innovation-entropy’ is our method to this ‘madness’.
Stay Small — Get Feedback — Technology is only as good as its users- eventually. Unused features in software products today is appallingly high. We don’t want to build something no one wants its a waste of your resources and time. Therefore we’re obsessed with those who use solutions and software and their feedback at every step of the way is critical to our process.
Grow — Measure Success — Outcome is everything, innovation for impact (not for the heck of it) is the philosophy, therefore measuring it every step of the way is critical not only to get a return on investment but to course correct.
While the number of iterations will vary based on the complexity of the problem, these steps are the “ Lego blocks” that help define a measurable unit of work with concrete outcomes. The process itself helps get to robust, scalable, ‘hardened’ systems- the kind we all like.
Source: For more facts on millennials check out this link. (Millennials).