Eco-Innovation

My personal interest on the topic of innovation revolves around many environmentally sustainable concepts. I studied for 3 weeks in Denmark about sustainable technology, so a lot of what I present in this entry will be based on what I learned there, although my inspiration comes from daily independent research.

The topic of global warming, or more specifically the greenhouse effect, has been around since 1906 when Swedish scientist, Svante Arrhenius, estimated that it would take 3,000 years to double the amount of carbon dioxide in the atmosphere. Yet the disruption and creation of the environmental-centric industry did not seem to explode until Al Gore took his ideas to the media (possibly in part because the rate of emissions exponentially increased). Governments, NGOs, corporations, and researchers alike knew about the speeding rate of emissions - but it wasn't until the media exploited the fundamentals for debate that the concept took hold with the masses. Now the principles are spreading to unlikely followers and uniting people under an entirely new innovation umbrella. I hate only thinking of innovation as 'invention'. It encompasses so much more than that and I'n afraid innovators are left thinking that they can only gain recognition through invention of new products. The first point I will make is that the real innovators in this eco-industry are the ones using "one man's trash". The second point I will make is that some of these trash-finders and waste-seekers are thinking up some of the most unbelievably creative products. Fear not, non-inventive innovators, you can use what is already there! These links are just a few of my favorites that I can't wait to see catching up with the green bandwagon.

1.) Harvey Seatbelt Handbags
http://www.seatbeltbags.com/info.html

2.) Freight Container Design etc.
http://weburbanist.com/2008/05/26/cargo-container-homes-and-offices/
http://www.thegreenestdollar.com/2009/02/want-to-live-in-a-shipping-crate/
http://www.containercity.com/home.html

3.) Boxed water and wine (because plastic and glass are too fancy)
http://www.boxedwaterisbetter.com/hello/
http://www.aboutboxedwine.com/

I hope this interests at least one other person, because I simply can't get enough! If you would like to know any more, I would love to share what I know and research what I don't.

Jim Todhunter also has a lot of great insight on his blog Innovating to Win, which is a great place if you're looking for relevant discussions.

Building a Culture of Innovation

In class and through our readings so far we have learned about the different types of innovations and some organizations that have developed innovative products, services, and so forth. Our discussions made me curious about organizations, such as Google and Apple, who are known not only for their innovative products, but as organizations who have built creativity and innovation in to their actual identity. I recently came across an article in BusinessWeek titled “How to Build a Culture of Innovation” about an immensely successful company in India, the Tata Group, who has made a conscious and rigorous effort to ensure that innovation is a high priority in the organization by empowering all of its employees, from top to bottom, to think creatively.

To me, the most interesting thing about Tata Group’s strategy was that they have formed what they call the Tata Group Innovation Forum (TGIF), a group of 12 senior Tata Group executives and some CEOs of the independently run companies whose main focus is on creating a concrete, detailed process for ideas to move through their company both from top to bottom, and from bottom to top. The fact that innovation is clearly a highly ranked goal of Tata Group is evident in many of their organizational practices, such as their performance review process which lists innovation as one of the 9 factors employees are evaluated on. They also offer annual “Innovator Awards” which are linked to significant bonuses, salary raises and promotions.

Other key points from Tata Group’s creative strategy include a training process which focuses on building a culture of “creative dissatisfaction,” from employee orientation to various workshops such as the “Technovator.” Tata also launched a sort of social networking site for its employees to submit and discuss their ideas, called IdeaMax (which is similar to Digg, for those of you who may be familiar with that).

The article highlights the following key lessons from Tata Group for other organizations to incorporate in their innovative strategies:

· Leadership lays the foundation
· Hire the right people, but also focus on building processes.
· Build innovation into the organization
· Use social media to tap ideas and encourage collaboration
· Celebrate innovators

You can read more about Tata Group’s innovative strategy here:
http://www.businessweek.com/innovate/content/aug2009/id20090819_070601.htm?chan=innovation_innovation+%2B+design_innovation+strategy

Wireless Power

I recently found an article on CNN which embodies innovation and thus is perfect for our class blog. The article, entitled “ A Cordless Future for Electricity” focused on the new technology of wireless electricity and how it could make the daily lives of the American consumer easier, much sooner than we might think. WiTricity, is the name of the company that is developing wireless electricity, which they say “has the potential to cute the need for power cords and throw-away batteries." These researchers have found a way to convert the electricity into a magnetic field and send it through the air, all without the use of a a wire. With the onset of wireless electricity, which MIT researchers predict will be available in one year, it will make the need for countless power cords and batteries slim to none.

The proponents of this wireless technology cite that it could be a great help to the environment by saving consumers from using millions of disposable batteries a year Additionally, it would make it easier for electric cars to gain popularity because people wouldn’t have to plug the cars up, but rather drive them on to a wireless power mat. However, as we’ve discussed in class, even though this technology could be revolutionary in terms of innovation, it could also be disruptive by ending the need for traditional batteries. If electronics consumers no longer need batteries to power their items, sales could drop significantly, and the battery industry could cease to exist as we know it. Many other products that used to rely on battery power might have to adapt in order to keep up with the current trends in technology. Something of this magnitude could potentially affect several industries and thousands of consumer products, especially if other companies try to develop their own wireless power. Then, the “era of ferment” that is characterized by "experimentation and competing ideas" will definitely ensue. Although, this wireless power seems so novel, it was interesting to note a quote by the CEO of WiTricity, Eric Giler, who said “Five years from now, this will seem completely normal.”

If you would like to read the article visit this link: http://www.cnn.com/2009/TECH/09/02/wireless.electricity/index.html

After reading the article give some thought to the possible advantages and disadvantages of such technology:

Given that this technology has been known of since 1890 and is still yet not available to the general public, do you think it could pose hazards to our health if not properly tested and hastily implemented like the Iridium phones?

Do you think that electric car sales would actually increase due to the availability of a wireless power source? What subsequent affect would this have on the traditional, gas powered, car sales and/or status of the current car industry?

Interactive Banner Ads on Television

Did you ever imagine you would be able to order a product on television without dialing a 1-800 number? Cablevision, a telecommunication and entertainment company serving NJ, NY, and CT, has just announced that their customers will soon be able to order products and coupons with the click of their TV remote. Interactive banner ads will scroll along the bottom of selected commercials, which will allow you to click on the ad to get more information or place an order. When the product rolls out in October their viewers will only be allowed to order product samples, brochures, and coupons. The purchasing will be available in 2010. An article mentioned that other TV operators such as Comcast and Time Warner are testing or rolling out similar products, but they are not as advance in their efforts.

Since the introduction of DVR and TiVo the TV industry has been scrambling to develop an idea that will bring back the power of commercials. I find the introduction of DVR very interesting because cable companies introduced a disruptive technology, with respect to commercials, to their own industry. Right now the TV industry is in an era of ferment, as everyone is looking for the fix. However do you think this is going to be the solution? I believe it is merely a stepping stone, because if you are not watching the commercials then you are not going to order anything. Below are links to a couple of articles about the topic.

http://www.nytimes.com/external/gigaom/2009/09/16/16gigaom-cablevision-to-launch-clickable-tv-ads-91760.html

http://www.crainsnewyork.com/article/20090915/FREE/909159978

Dragon's Den

For those of you who might not be familiar, I thought I would pass along some info about a TV show that seems pretty relevant to our class. BBCAmerica broadcasts a show called Dragon's Den (which also airs on the BBC in the UK). Dragon's Den originated in Japan (it was originally called Mane no Tora, which translates to Money Tigers), and is a reality show in which inventors face a panel of entrepreneurs who can provide capital for their inventions in exchange for a share of the business. The catch is that the inventor has to say up front how much money they need, and in order to get any of the money, they have to convince the "Dragons" to fund the entire amount. Sometimes its entertaining, sometimes painful, but when it first came on I was kind of addicted to watching it. 

A lot of people bank their entire lives and fortunes on their invention and have pretty strong reactions to questioning, and sometimes their hopes are dashed. It's been interesting to think about in the context of this class- is that an innovation? Is it a disruptive one? How about the show itself? Is it an innovation? It has certainly been duplicated- there are 16 versions of the show worldwide, and ABC is working on a U.S. version, called Shark Tank, which actually premiered this fall. What do you think? Will you watch it?

Here is a clip of the online version of the show: http://www.youtube.com/watch?v=Qo_8B8OQf6g&feature=related

And a parody version, where an inventor pitches the idea for an invention called the "Crapper": http://www.youtube.com/watch?v=C3tjVHQLQ4A

WSJ Technology Innovation Awards Past and Present

This Monday, the Wall Street Journal announced its 2009 Technology Innovation Awards. In light of our innovation projects, I thought that those interested in developing a technological innovation might find a source of inspiration from this Journal Report. The report not only gives an overall gold metal winner, this year to the Ibis T5000 sensor that quickly detects and identifies pathogens in a sample, it also describes winners from a variety of categories: computing systems, consumer electronics, energy, environment, health-care IT, materials and other base technologies, medical devices, medicine-biotech, security-privacy, semiconductors, software, and wireless.

A section of the report gave updates on past winners. One winner, SPOT LLC, struck me as interesting due to our class discussion on Iridium last week. They won the 2008 consumer electronics category award for their satellite-messaging device. SPOT LLC’s Satellite Messenger was originally intended for hikers, skiers and others out of cell-phone range to transmit their current locations and send preprogrammed messages such as “This is an emergency. Please send help.” This device addresses many of the same problems that the creators of Iridium set out to solve but cheaper. It sells for $169 and basic service starts at $99 per year. The company has also continued to innovate both with product and positioning. They introduced a second version that is 30% smaller and in July began offering a roadside assistance services. SPOT LLC currently has 370,000 subscribers and is expanding their distribution nation wide to retailers such as BestBuy. For more information on SPOT see: http://www.findmespot.com/en/index.php

The Fountains of the Future: Coke’s Freestyle Machines

If you’ve ever craved a Caffeine-free Lime Diet Coke but the vending machine only offered the standard Coke and Diet Coke, then look no further because Coca-Cola’s “Freestyle” machines are here!  Coke's introduction of the “Freestyle” vending machine eliminates the limited selection problem by offering more than 100 drink flavor options.  Referred to as the “fountain of the future” by Coca-Cola, the “Freestyle” offers everything from standard sodas and energy drinks to flavored waters and natural water. 

With the recent release (July 2009) of the new machines, I think Coca-Cola is introducing an interesting new business model in the soft drink industry – a process innovation that could disrupt and revolutionize the market.  Physically, the Freestyle is about the same size of a standard vending machine but features several new innovative features, such as a large touch screen interface.  The user navigates through a selection of 100+ drink flavoring options and then the machine uses small doses of flavor from built-in flavor dispensers to mix up the perfect drink.  The Freestyle is more than a simple drink vending machine: it is a market researcher, customer service tool, and an inventory and supply manager – all in one.  The integration of these functions and their information streams offers Coca-Cola a unique opportunity to sustain their current products while simultaneously revolutionize the soft drink market. 

I think the Freestyle innovation will offer several Coca-Cola several advantages over competitors.  On the first hand, the wider array of drink choices will undoubtedly satisfy many consumers who were once disappointed by a limited selection of drinks.  Secondly, the Freestyle will likely expand Coke’s customer base by attracting new consumers who typically select water or no drink offered by their vending machines.  Both of these competitive advantages will allow Coke better capitalize on their drink products.

All in all, the Freestyle is both a product and process innovation.  Moreover, I think the Freestyle’s revolutionary potential lies in its market data, rather than its drinks.  Prior to the Freestyle, product testing was a time-consuming and expensive process.  By having access to a constant stream of consumer behavior, Coca-Cola can more easily test new drinks and respond quicker to current and emerging market trends.  As soon as preferences emerge in the consumption data, Coke can begin designing new drinks that better meet customers’ preferences.  

I also think the Freestyle will allow for better geographical differentiation as well.  Based on the machines’ market data, Coke can better identify geographical differences in consumers’ taste preferences.  For example, suppose the company discovers that energy drinks are much more popular in New York City than elsewhere.  Coke can use this information to advise client restaurants in New York to better stock their inventories with energy drinks.  Likewise, the machines will allow Coke to observe how drink tastes change throughout the day.  For instance, perhaps Freestyle data reveals a post-lunch peak in sales of caffeinated drinks.  Coke can use this valuable information to guide their marketing campaigns and better target their post-lunch consumers.  Ultimately, the Freestyle will shorten or eliminate the time period between preference/ trend identification and capitalization. 

Questions for you:

How do you think the Freestyle will change the soft drink and vending machine industry?

How do you think the purchase decisions will vary between high schools, office buildings, malls, etc.?  How can Coke best respond to these consumer differences?

Do you think the Freestyle innovation could change any other industries as well?  How about the fast-food industry, particularly the drive-thru element?