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Ideas for Impact

Innovation

How to See Opportunities Your Competition Doesn’t

November 19, 2021 By Nagesh Belludi Leave a Comment

'Different' by Youngme Moon (ISBN 0307460851) Harvard strategy professor Youngme Moon’s Different: Escaping the Competitive Herd (2010) describes how many companies pursue the same opportunities that every other company is chasing and thus miss the same opportunities that everyone else is missing.

In category after category, companies have gotten so locked into a particular cadence of competition that they appear to have lost sight of their mandate—which is to create meaningful grooves of separation from one another. Consequently, the harder they compete, the less differentiated they become … Products are no longer competing against each other; they are collapsing into each other in the minds of anyone who consumes them.

Moon argues that the companies and brands that see a different game win big. Such innovators don’t just try to outcompete their rivals at the margin. Instead, they redefine the competitive landscape by embracing unique ideas in a world crammed with me-too thinking.

European airline Ryanair unleashed a new wave of relentless cost- and price-leadership by charging customers extra for everything beyond a seat itself. If you want to check a bag, you pay extra. If you want an airport agent to check you in and print your boarding pass, you pay extra. If you want food and drink, you pay extra. Later on, Spirit Airlines took the price-obsession further by charging for carry-on bags too. After a rough rollout and customer defiance, paying for carry-on bags has become the new normal.

Idea for Impact: Being different is what makes all the difference. If you do things the same way everyone else in your field does things, why would you expect to do any better? What are you doing to raise your game—not just to stay in place, but to get ahead?

Wondering what to read next?

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Filed Under: Business Stories, Leadership, The Great Innovators Tagged With: Aviation, Competition, Customer Service, Getting Ahead, Innovation, Leadership, Risk, Strategy

How to Bring Your Ideas to Life

October 4, 2021 By Nagesh Belludi Leave a Comment

No matter how good an idea is, it’ll probably need some work before it can evolve into a helpful innovation. I’ve previously drawn attention to this aspect of the creative process in my 3M Post-it Note case study.

Another notable example of what transforms ideas into innovation is the “discovery” of penicillin and its curative effect on infectious diseases.

The Scottish bacteriologist Sir Alexander Fleming discovered penicillin. More specifically, Fleming found that a specific mold produced penicillin. This substance was previously known to inhibit the growth of bacteria.

In 1928, Fleming was working on cultures of Staphylococcus, a bacterium that induces blood poisoning. Upon returning from a vacation, he saw a discarded Petri dish that he had left behind without sterilizing. It had a zone around an invading fungus where his bacterium culture didn’t grow. A mold spore from another lab in Fleming’s building had unexpectedly fallen on one of his cultures. The spore had spread over the Petri dish while Fleming was away. Instead of throwing the dirty Petri dish away, he isolated the mold and identified it as Penicillium chrysogenum, which kills bacteria by inhibiting new cell walls.

Fleming suggested his discovery might be used as an antiseptic in wounds. He published an account of this work in 1929. However, he couldn’t find a way of extracting enough penicillin needed to be curative enough without it becoming ineffective.

In itself, Fleming’s discovery was thus not a substantial leap in terms of penicillin’s use as a pharmaceutical. After Fleming’s discovery, penicillin proved unstable and difficult to produce in pure form for almost a decade. It took two Oxford University scientists, Sir Howard Walter Florey and Dr. Ernst Boris Chain, to realize its full potential only in the 1940s. They showed how to prepare penicillin in usable form and demonstrated that it could be favorably applied to the treatment of disease.

From the time when its medical application was established, penicillin has saved millions of lives by stopping the growth of the bacteria responsible for poisoning the blood and causing many once-fatal diseases. Fleming, Florey, and Chain shared the 1945 Nobel Prize for Medicine to recognize their complementary achievements.

Idea for Impact: Often, there’s a divergence between an idea and its tangible application that the original creator can’t bridge by himself. The creator will have to expose the concept to others who can evaluate and trial the discovery in new contexts.

In other words, the creative process doesn’t end with an idea or a prototype. A happy accident often undergoes multiple iterations and reinterpretations that can throw light on the concept’s new applications.

Wondering what to read next?

  1. Unlocking Your Creative Potential: The Power of a Quiet Mind and Wandering Thoughts
  2. How to … Get into a Creative Mindset
  3. Restless Dissatisfaction = Purposeful Innovation
  4. Ideas Evolve While Working on Something Unrelated
  5. Van Gogh Didn’t Just Copy—He Reinvented

Filed Under: Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Innovation, Luck, Parables, Problem Solving, Teams

We Need to Unlearn Not Being Creative

August 26, 2021 By Nagesh Belludi Leave a Comment

Creativity is a fundamental tenet of being. Every idea, no matter how trivial, is a spontaneous association between established earlier ideas.

Creativity is how we think and reason. It’s how we understand and explore. Everything else—education, upbringing, social conditioning, cultural mores—confines our creativity.

The principal villain is that little voice inside our heads that holds us back because a creative activity is disruptive. Originality begets instability. Creativity takes time, effort, and courage. Being imaginative is more unpredictable than the comfort of the repetitive pattern of everyday existence.

Watch children at play. They can invent new worlds, compose new narratives, and fantasize in double-quick with an endless stream of creativity. Children don’t hold back—to them, all things are possible because they haven’t learned that some things are impossible.

In other words, children are less hindered by prior patterns of thought. They don’t judge the quality of their creations. Nor must they “save face” if others think their ideas to be stupid. They simply move on to something else.

Alas, this high level of creativity isn’t necessarily sustained throughout childhood and into adulthood. By high school, most children have their creativity gently squeezed out by those (adults, undeniably) who think more conventionally.

Idea for Impact: We adults don’t need to learn to be creative. We need to unlearn not being creative. As Albert Einstein once said, “To stimulate creativity, one must develop the childlike inclination for play.”

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Filed Under: Sharpening Your Skills Tagged With: Asking Questions, Creativity, Innovation, Learning, Pursuits

Always Be Ready to Discover What You’re Not Looking For

July 19, 2021 By Nagesh Belludi Leave a Comment

Corn flakes were born (1894) when the Kellogg brothers inadvertently left a pot of boiled wheat overnight on a stove. They passed the flaky dough through bread rollers and baked the flakes to create a crunchy snack.

The Penicillin mold was discovered (1928) by Sir Alexander Fleming, who, upon returning from a vacation, saw a Petri dish that he had left behind without disinfecting. That Petri dish had a zone around an invading fungus where his Staphylococcus bacterium culture had not grown. A mold spore from another lab in the building had accidentally fallen on this culture. The spore had grown while Fleming was away. Rather than throw the dirty Petri dish away, he isolated the mold and identified it as belonging to the Penicillium genus, which kills bacteria by inhibiting new cell walls.

The microwave oven was invented (1945) unintentionally during an experiment by Percy Spencer of Raytheon Corporation. Electromagnetic waves from a new vacuum tube melted a chocolate bar in his pocket while standing next to a magnetron.

Viagra had been developed (1989) as the chemical compound sildenafil citrate to treat hypertension and angina pectoris. Researchers found during the first phase of clinical trials that the compound was good for something else. It was approved for medical use in 1998.

Serendipity is a rich idea that is very central to the creative process. Lots of ideas evolve when you’re working on something unrelated. Physiologist Julius H. Comroe Jr. once said, “Serendipity is looking in a haystack for a needle and discovering a farmer’s daughter.”

Idea for Impact: Creativity is a disorderly journey. Much of the time, you may never get where you’re going. You may never find what you hope to find. Yet still, you must stay open to the new and the unexpected.

Explore how to transform serendipitous ‘mistakes’ into breakthroughs.

Wondering what to read next?

  1. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  2. Ideas Evolve While Working on Something Unrelated
  3. The #1 Clue to Disruptive Business Opportunity
  4. Unlocking Your Creative Potential: The Power of a Quiet Mind and Wandering Thoughts
  5. Luck Doesn’t Just Happen

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Creativity, Entrepreneurs, Innovation, Luck, Problem Solving, Thinking Tools

Don’t Try to Convince Every Potential Customer

June 16, 2021 By Nagesh Belludi Leave a Comment

Many entrepreneurs believe that their innovation is so unique and valuable that the whole world will want it, and if a potential customer won’t get it within seconds, it’s only a question of hammering it into their heads.

Don’t try to convince every potential customer to buy your product or service. If they get your innovation within, say, three minutes—excellent. If not, move on.

As you go about selling your product or service in the early stages of your business, you may find specific customers who will get what you’re doing. They’ll cheerfully buy your solution if they could be convinced that your solution can solve a problem they have (or if you can help them recognize a problem that they have but don’t see it yet.)

If you’re starting out, such customers will be your early adopters. At this stage, they’re the ones that are your biggest fans (or critics) and can be an enormous asset for gaining traction by word-of-mouth.

Idea for Impact: Instead of misusing your marketing efforts on convincing all those who don’t get it and may never get it, laser-focus on identifying, courting, and engaging the early adopters.

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  2. Pretotype It: Fail Fast, Learn Faster
  3. Make ‘Em Thirsty
  4. The #1 Clue to Disruptive Business Opportunity
  5. Creativity & Innovation: The Opportunities in Customer Pain Points

Filed Under: Leadership, MBA in a Nutshell Tagged With: Creativity, Customer Service, Entrepreneurs, Innovation, Thinking Tools

The #1 Clue to Disruptive Business Opportunity

January 28, 2021 By Nagesh Belludi Leave a Comment

When most folks encounter a problem, an inconvenience, or an unpleasant situation, they’ll assume these problems are “facts of life” and go on with their lives. At the most, they may even lament about it to others.

Not attentive entrepreneurs. They tend to identify problems and construe them as opportunities.

Serial entrepreneur Miki Agrawal tells the story of how she started WILD, New York City’s first gluten-free pizzeria, after becoming increasingly intolerant to processed foods:

It all started in 2005 when I started having recurring stomachaches. I realized I was intolerant to all of the additives, hormones, and pesticides that were being put in American mass-produced food. At the time, I had given up my favorite comfort food, pizza. In 2006, I opened WILD in New York City to offer people the best version of a pizza: made with organic, gluten-free flours & tomato sauces, and hormone-free cheeses & meats.

During that time, everyone thought “gluten-free,” “farm-to-table,” and “organic” meant “must taste like cardboard,” so it took a lot of education to get people to “get” it.

Embedded in Agrawal’s narrative is a great entrepreneurial thought lesson: You, too, can become better at recognizing unrevealed opportunities by learning to spot the subtle clues all around. The key question to ask is, “This product should already exist, why doesn’t it?”

Learn to Spot Hidden Business Opportunities

Besides WILD, Agrawal has applied the same ingenuity to found two other successsful businesses called THINX underwear and TUSHY bidet accessories.

Answer the following questions to check if some problem you’re aware of serves as a business idea worth exploring:

  • What’s appalling in your personal or professional world?
  • Is this thing so terrible that you want to do something about it?
  • Does this bother any person but you just as much?
  • Your proposed solution should already exist, but why doesn’t it?
  • Could this solution be worth something for others who are dealing with similar problems?

Idea for Impact: “Fix-What-Sucks” Business Opportunities are Everywhere

All you have to do is look around your own life and find something that has been broken, and then fix it. Extend and expand. The world is always seeking better, faster, cheaper, and smarter ways to solve its problems.

Wondering what to read next?

  1. Make ‘Em Thirsty
  2. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  3. Always Be Ready to Discover What You’re Not Looking For
  4. Fall in Love with the Problem, Not the Solution
  5. Creativity & Innovation: The Opportunities in Customer Pain Points

Filed Under: Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Entrepreneurs, Innovation, Problem Solving, Thinking Tools, Winning on the Job

Fail Cheaply

November 19, 2020 By Nagesh Belludi 1 Comment

One way to accelerate innovation is to undertake low-risk experiments.

Failures in the innovation process can be costly and time-consuming. It’s often wiser to try low-risk, low-cost, high-payoff experiments than ruminating endlessly.

Make your experiments cheaper. You don’t need to create a full-scale concept to test it. Find low-cost ways to test your assumptions. It may take time and iteration to find what works for you.

  • Engineers often use surrogate modeling techniques that use simple prototypes and mock-ups that are as representative as possible.
  • Counter to the phrase “it takes money to make money,” shrewd entrepreneurs know how to experiment multiple ways for minimal cost. Next, they scale up one or two experiments that have given them favorable results. The losses are small, and the potential gains much larger.

Idea for Impact: The worst way to fail is slow and big. Don’t eliminate failure. Only reduce the cost of failure.

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  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: MBA in a Nutshell, Mental Models, Sharpening Your Skills Tagged With: Change Management, Creativity, Decision-Making, Entrepreneurs, Innovation, Risk, Strategy

Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”

November 2, 2020 By Nagesh Belludi Leave a Comment

In the mid-1950s, Gillis Lundgren (1929–2016) was a draftsman living in a remote Swedish village of Älmhult. He was the fourth employee of a fledging entrepreneur named Ingvar Kamprad.

Kamprad’s business was called IKEA, an acronym combining his initials and those of his family’s farm and a nearby village. He had founded IKEA in 1943 and got his start selling stationery and stockings at age 17. In the 1950s, Kamprad had launched a low-cost mail-order furniture retailer to cater to farmers.

Constraints have played a role in many of the most revolutionary products

In 1956, Lundgren designed a veneered, low coffee table. He built the table at home but realized that the table was too big to fit into the back of his Volvo 445 Duett station wagon. Lundgren cut off the legs, packed them in a flat box with the tabletop, and rushed to a photoshoot for the IKEA furniture catalog.

And in so doing, Lundgren unintentionally birthed the flatpack furniture industry. He modified his simple design and drew up plans for a disassembled version of the table. Lundgren’s Lövet table (now called Lövbacken) became IKEA’s first successful mass-produced product.

IKEA and Its Flatpacking Took Over the World

IKEA’s trademark, easy-to-follow assembly instructions are a central ingredient to the company’s success. Manufacturing and distributing prefabricated furniture via flatpacking has proved enormously successful. It has dramatically facilitated the shipment and storage of pieces that otherwise took up much more space.

According to Bertil Torekull’s Leading by Design—The IKEA Story (1998,) the concept of ready-to-assemble furniture is much earlier than that. But IKEA was the first to systematically develop and sell the idea commercially.

Flatpacking contributed to many of IKEA’s products’ enduring popularity—they’re affordable, sleek, functional, and brilliantly efficient. In 1978, Lundgren designed the iconic Billy bookcase, the archetypical IKEA product that currently sells one in three seconds.

IKEA’s aesthetic of simplicity and efficiency reflects in its exclusive design and marketing approach. IKEA constantly questions its design, manufacturing, and distribution to create low-cost and acceptably good products.

The method has been adopted by numerous other business enterprises, transforming how products are made and sold globally.

Out of Limitations Comes Creativity

One problem with creativity is that sometimes people face an open field of creative possibilities and become paralyzed. Constraints can be the anchors of creativity [see more examples here, here, and here.]

Constraints fuel rather than limit creativity. Use constraints to break through habitual thinking and promote spontaneity. The mere experience of playing around with different constraints can stretch your imagination and open your mind’s eye for ingenuity.

Idea for Impact: Use constraints to help stimulate creativity. As the British writer and art critic G. K. Chesterton once declared, “Art consists of limitation. The most beautiful part of every picture is the frame.”

Wondering what to read next?

  1. Van Gogh Didn’t Just Copy—He Reinvented
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  4. Restless Dissatisfaction = Purposeful Innovation
  5. Unlocking Your Creative Potential: The Power of a Quiet Mind and Wandering Thoughts

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Adversity, Artists, Creativity, Critical Thinking, Entrepreneurs, Innovation, Parables, Problem Solving, Resilience, Thinking Tools

Overcoming Personal Constraints is a Key to Success

August 14, 2020 By Nagesh Belludi Leave a Comment

Why do some people reach ever-higher levels of achievement, while others struggle or just plug along?

Norman Vincent Peale, the doyen of the think-positive mindset, provides a particularly illustrative example in You Can If You Think You Can (1987):

In Tokyo, I once met an American, an inspiring man, from Pennsylvania. Crippled from some form of paralysis, he was on a round-the-world journey in a wheelchair, getting a huge kick out of all his experiences. I commented that nothing seemed to get him down. His reply was a classic: “It’s only my legs that are paralyzed. The paralysis never got into my mind.”

No matter how formidable your talents, you’ll be held back by certain attitudes and behaviors that limit your achievements.

Your personal constraints—some of them beyond your control—will determine your level of success. Identify those constraints and make a plan to triumph over them.

Idea for Impact: The more you can reframe your attitudes toward the past, future, and present, the more likely you’ll find a meaningful life. Don’t let your constraints lay down what you can achieve.

Wondering what to read next?

  1. Restless Dissatisfaction = Purposeful Innovation
  2. Turning a Minus Into a Plus … Constraints are Catalysts for Innovation
  3. How You See is What You See
  4. The Arrogance of Success
  5. Four Ideas for Business Improvement Ideas

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Attitudes, Creativity, Critical Thinking, Innovation, Mental Models, Parables, Problem Solving, Thinking Tools, Thought Process

Make ‘Em Thirsty

May 6, 2020 By Nagesh Belludi Leave a Comment

Sony’s Akio Morita, like Apple’s Steve Jobs, was a marketing genius. Morita’s hit parade included such iconic products as the first hand-held transistor radio and the Walkman portable audio cassette player.

Key to Morita’s success was his mastery of the art of the pitch. Morita pushed Sony to create consumer electronics for which no obvious need existed and then generated demand for them.

The best marketing minds know how to create a customer—previously unaware of a problem or an opportunity, she becomes interested in considering the opportunity, and finally acts upon it.

Coca-Cola marketers are but creating a thirst by showing the fizzle a freshly poured glass in Coke ads. “Thirst asks nothing more,” indeed.

The marketing guru Seth Godin has said, “So many people are unhappy … what they have doesn’t make them unhappy. What they want does. And want is created by the marketers.” Recall the old parable,

A sales trainee was trying to explain his failure to close a single deal in his first week. “You know,” he said to his manager, “you can lead a horse to water, but you can’t make him drink.”

“Make him drink?” The manager sputtered. “Your job is to make him thirsty.”

Idea for Impact: Whether you realize this or not, you’re in marketing, as is everybody else. You’re constantly pitching your ideas, skills, time, appeal, charm, and so forth. Study the art of the pitch. Master the art of generating demand for whatever it is you have to offer. Learn to “make ’em thirsty.” Marketing is everything.

Wondering what to read next?

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  2. What Taco Bell Can Teach You About Staying Relevant
  3. Restless Dissatisfaction = Purposeful Innovation
  4. The Emotional Edge: Elevating Your Marketing Messaging
  5. Airline Safety Videos: From Dull Briefings to Dynamic Ad Platforms

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Customer Service, Innovation, Marketing, Parables, Persuasion, Problem Solving, Skills for Success, Thinking Tools, Winning on the Job

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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