Archive for the ‘Blogs’ Category

Greenwashing: Electric Cars and Innovation Stalled

Tuesday, June 14th, 2011

Electric cars seem like the socially conscious, feel-good investment among environmentally friendly consumers. In corporate boardrooms, the innovation seemed well liked indeed.

 

What’s not to like? Cars like the Nissan Leaf and Chevrolet Volt reportedly can drive for a day or more on a full electric charge. The Toyota Prius reduces a tank full of exhaust to the whir of a hybrid electric/ gas engine.

 

The numbers are astonishing. The Nissan Leaf is considered the most fuel efficient vehicle in the U.S., tallying 106 mpg on the highway, and 92 in the city. The Volt gets 95/90. The Smart fortwo electric drive gets 94/79. Compared with the 16-cylinder, eight liter Bugatti Veyron, which chugs one gallon for every eight miles, the electrics and hybrids are downright stingy.

 

Manufacturers are riding the hype to strong brand awareness. Nissan’s international brand appeal accelerated at 17% – more than that of any other automotive brand, notes Millward Brown Optimor-devised’s “BrandZ Top 100 Most Valuable Global Brands” . Analysis attributed the growth of Nissan’s brand awareness to the debut of the Leaf. After all, it had been named both European Car of the Year and World Car of the Year, both for 2011.

 

Turn back the leaf – or look behind the hard-to-find recharge stations – and you’ll find deeper questions about electric cars. Prices are high, charging stations remain scarce, re-charge cost is unknown, batteries are expensive to replace – and environmentally costly to dispose of.

 

The real question to ask: Is society being “greenwashed” into accepting electric cars? Like whitewashing, greenwashing is the process of covering up a questionable product’s failings in the cloak of environmental friendliness. Buying products made of recycled packaging; ethanol-enhanced gasoline or an electric car is a good first step toward environmentally friendly consumer practices.

 

Just know the whole story. Consider “range anxiety.” This new mental issue plagues owners of electric cars. Owners wonder how long their vehicles will last on a charge. In Europe, a variety of facilities have been built (or are under consideration) to charge vehicles away from home.

 

To that end, the availability of a charge remains a persistent challenge to full consumer acceptance. In Europe, charging stations are comparatively more easily available than in the U.S.

 

The key issue for any concerned consumer is: Where’s the power coming from? Most electricity in the U.S. comes from nuclear facilities or power plants that burn coal or fossil fuels. If an electric car consumes electricity from a charging station itself fueled by a power plant that uses fossil fuel, isn’t the car essentially consuming fossil fuels?

 

What are the “true green” alternatives for today’s electric cars? Solar panels on the roof of homes, feeding power directly to the charging station are one option? Another could be solar panels incorporated into the roof or body of the vehicle itself. Or wind powered recharging stations? We’d first need widespread use of wind farms to bring that solution to bear.

 

Apparently, American consumers aren’t buying it. Sales figures remain soft, leading some to surmise that these vehicles are slow to turn the corner toward broad acceptance.

 

More than innovation will be needed to charge life into the electric car. One only hopes that from the boardroom to the garage to the neighborhood charging station, solutions emerge that shift these vehicles into the next gear.

 

 

By Robert Brands with Jeff Zbar [www.gotwords.biz]

 

$4 Per Gallon Gas = Energy Innovation

Tuesday, June 7th, 2011

Long lines at the gas pump weren’t the only product of the twin energy crises of the 1970s. A legislative push toward energy conservation and innovation were also born as a result.

And that’s why one expert believes the skyrocketing price of oil will do the same in 2011.

“History has proven that innovation in the energy industry has almost always been driven by high consumer prices,” said Robert Brands, a veteran corporate executive who now consults with companies worldwide and author of Robert’s Rules of Innovation. “When we had cheap and abundant oil – and low gas prices – during the 1980s, energy exploration and innovation slowed to a halt. We didn’t need it, and we didn’t see an end in sight to the steady stream of oil from the Middle East. So, investors held back funds for new technologies, oil companies stood pat and conservation became a four-letter word.”

According to the Pacific Northwest National Laboratory for the U.S. Department of Energy, more than $172 billion dollars of government money was spent on new energy technology between 1961 and 2008, with the bulk of it being used during the 1970s. In the 1980s, the spending accounted for only 1 percent of all federal investment.

Brands believes that oil companies, besieged by Congress over taking huge tax breaks amid record profit reports, could earn some much needed political points by taking history’s cue and putting some of that money back into energy innovations.
“When you look at the broad spectrum of what the oil companies are making and compare it to the rate of innovation in alternative energy, it’s like comparing Mount Kilimanjaro to a grape,” Brands said. “Now, most consumers aren’t aware of that truth, because oil companies and ad agencies are very good at making it look like alternative energy is humming along when it’s not. While consumers may not connect those dots, they are very aware of the headlines that show record oil company profits combined with massive tax breaks – especially during a time when federal deficits are threatening them, their children and their children’s children. Today’s energy innovation is a fraction of the total and what should be spend. What’s more, the same old song and dance the oil companies offer with regard to touring how much of a percentage their research and development expenditures are as compared to revenue is a joke, and absolutely no guarantee of success.”

Brands wants oil companies to spark innovation not only because of the positive press it will net, but also because it’s the right thing to do.

“The truth is that many scientists are beginning to calculate an end to the fossil fuel era, because one day, we will run out,” Brands added. “Innovation in this area has been driven by high prices and it has been driven by shortages. When we begin to run out, we’ll experience both, and it will be too late to innovate. We need to do it now, when our resources to commit to it are abundant.”

About Robert Brands

Robert F. Brands, a veteran of companies like GTE, Kohler and Rexam, is president and founder of InnovationCoach.com. Having gained hands-on experience in bringing innovation to market, creating and improving the necessary product development processes and needed culture, he delivered and exceeded bringing “at least one new product per year to market” resulting in double digit profitable growth and shareholder value.

 

Keep the Idea Highway Open to All

Tuesday, May 31st, 2011

Innovation advances your company towards the future – generating new products or services, boosting profits and increasing stakeholder value. To develop Innovation, the first step is to Inspire and Initiate your organization’s members. Innovation leaders need to provide the right support, both material and emotional, to stimulate new product development (NPD).

What are effective methods of inspiring innovation? For starters, keep the idea highway open to all. Good ideas can come from anywhere within your company and from any level. Communicate your innovation goals to the organization and encourage everyone’s feedback. Setting regular monthly in-person NPD meetings will ensure that the innovation process doesn’t fall off course. Hold your team members accountable for attending on time and actively participating at each meeting. Monitor progress, make new decisions and set target goals for the next meeting to steer the innovation process along.

The best way to stimulate innovation is to take team members out of their regular comfort zones. Knock down silos in the organization so that groups who don’t typically interact can form cross-functional teams. Take innovation champions from marketing, operations, finance, sales, customer service – or any other department of your company – and communicate to them simply and clearly your innovation goals and how your vision will shape the future of the company. By working with other departments, team members can see how their position fits into the organization as a whole and how they can contribute their specialized knowledge.

Innovation is the lifeblood of any organization and in order to achieve it, CEOs and Management team should lead by example. Encourage, inspire and initiate your team to be creative and to make breakthroughs. Let them dare to take risks, and accept failure along the way as a minor setback for the price of Innovation. By openly communicating and providing ample support, your team members will trust in you as a leader who wants to inspire a culture of Innovation.

The Right Rewards: Business Beyond Bonuses

Tuesday, May 17th, 2011

What is the ultimate purpose of Innovation in a business? The end goal is Return On Investment (ROI) for all Stakeholders. After all, the objective of the New Product Development process is to turn ideas into money. ROI comes in the form of increased shareholder value, new products and new features – everyone wins, including your employees, your customers and your stakeholders. So to move your company forward and stimulate profitable growth, it’s important to give every member of your organization the proper motivation.

In “Robert’s Rules of Innovation”, Net Result and Reward is about motivating your people with the right incentives. Motivation does not necessarily mean rewarding with money, and quite frankly it is about recognition for a job well done. Give your NPD team incentive to produce innovative ideas. What type of rewards can you give your team, beyond bonuses? Here are some ideas for non-financial motivation.

  • You want your employees to feel a sense of loyalty to the company. Reward high performance with opportunity – to sit on a panel, a team or attend a business conference.
  • Recognize a job well done with an award program. Give an award to a NPD team member who has achieved a great accomplishment.
  • One of the best ways to highlight an innovation champion’s achievement is to give them exposure. Introduce them to a client, or invite them to lunch with an executive of the organization or face time with the boss.
  • Simple praise will boost morale (so long as it is deserved)! People like to know that their success was noticed by the head of the company.

These non-financial rewards can benefit an organization by increasing an employee’s loyalty and commitment to the company, boosting company morale and reinforcing ideal outcomes in the future. Motivating employees to reach their top performance is a win-win situation for everyone involved and equates to Innovation ROI. Actually a November 2009 study by McKinsey concluded that recognition and these types of rewards were appreciated more than just financial rewards.

For additional tips on how to drive a successful New Product Development team, look for “Robert’s Rules of Innovation”. Robert Brands is the founder of InnovationCoach.com and the author of “Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival,” with Martin Kleinman published by Wiley.

How to Measure Innovation

Tuesday, May 3rd, 2011

No matter if it’s a test score, sports game result or a sales figure, what we measure is what goes down in history. After all, “what’s measured is treasured.” It’s human nature to look back at past results as a basis for comparison and for improvement in the future. For this reason, it is absolutely essential to carefully observe and measure performance in the New Product Development process. In each of the different stages of the process, keep track of how much time is being spent so you know if you are ahead or behind schedule compared to past NPD cycles.

What gets measured is what gets done. Therefore, it’s necessary to set leading and lagging indicators for how the NPD process is going. Leading indicators such as the number of new ideas in the database, number of projects in the hopper, patents applied to, and amount of time and resources spent are all important information that give you insight on the NPD progress. Lagging indicators could include number of new products introduced, patents granted, new product sales in the first three years after launch, and how close your team is getting to the goal of introducing “at least one new product per year.”

By the way the traditional measurement of % of R&D spend is no guarantee for success!

Things will not always go as planned so now is the opportunity to make corrective actions. By measuring performance, you will be able to address your team on what’s working and what’s not for continuous improvement.

Success in product development is seen as one of the top indicators of the future performance of a company. To sustain Innovation, companies need to continuously improve their new product development capabilities. Quantitative and qualitative measurements of new product development will lend insights into a company’s strengths and weaknesses.

Measuring performance doesn’t stop after your product is launched. Now it’s time to measure the fruits of your labor. Some very important and telling information can be collected during the first three years after the launch of a product. In a survey of 200 companies that design and develop new products, they shared these key performance indicators.

1. Measure Research & Development spending as a percentage of your total sales.

2. Look at your total number of patents filed, pending, awarded and rejected.

3. Track your total R&D head count, hours or days spend.

4. Measure the current year percentage of sales due to new products released in the past year, past three years, and past five years.

5. Count the number of new products released.

These metrics should be examined after every New Product Development cycle so you are clear on your spendings and ROI for each product. Look at your ratio of new product sales compared to total sales. Now you have a basis for comparison and can set a target goal for the next new product. This management by objectives style uses ongoing monitoring and is an effective method for keeping the NPD team focused on achieving goals. By looking at opportunities in the New Product Development process to increase ROI, companies are able to improve performance and ultimately, increase shareholder value.

Feels Like the First Time: Innovation Through Product Experience

Tuesday, April 26th, 2011

When was the last time you experienced your product like it was your first time?

Product development is a process of cycles – followed by closure. We innovate and create a new concept. Assemble teams to research, develop, manufacture and market the product or service. We then ship it to market.

And then… What?

We leave it out there for consumers to embrace, or ignore. Meanwhile, as our products mature on the store shelves of the marketplace, we mentally have moved on to the next next thing.

Instead, we should revisit our product to gain a fresh perspective.

The CBS Television show Undercover Boss follows the adventures of executives who embark on an undercover mission “to examine the inner workings of their companies…Working alongside their employees, they see the effects that their decisions have on others, where the problems lie within their organizations and get an up-close look at both the good and the bad while discovering the unsung heroes who make their companies run.”

When was the last time you were an undercover or boss or prospect? As the CEO or Chief Innovation Officer, when did you last sample your wares, walk your store, demo your product or read your user manual? Playing the role of a “cold prospect” often gives a new point of view on even the most mature products.

Innovation Manager-as-Mystery Shopper touches on several of Robert’s Rules of Innovation. It allows us to Observe & Measure our products first hand. We take Ownership of our product lifecycle to an entirely new level. It may even encourage fresh lines of new product development. Hopefully, it encourages us to think about ways to train and coach other innovators – and even our customer-facing employees – on the finer points of the product, service or company mission.

Want to play mystery shopper or prospect?

- Call your customer service or main office line to make an appointment or reach an individual. Do you get trapped in phone bank hell? Is it easy to “zero out” to a receptionist? I recently spoke with a physician who lamented it taking him almost an hour to get lab results over the phone – from his own office. “Welcome to our world,” I chided.

- Record and listen to your customer service rep encounters. If your organization actually records customer phone calls (you hear it all the time, “This call may be recorded for training purposes…”), listen to the calls. Find high and low points. Look for ways to improve the user experience.

- Walk the aisles. Watch your salespeople or retail associates in action. How responsive are they? How effective are they at engaging the customer? Are they upselling where possible? Stanley Steemer maximizes upsell opportunities once they’re in a customer’s home.

- Keep a notepad handy. Be on the lookout for fresh ideas about process or product innovation.

- Assemble or use your own product. Are your instructions clear? Does “Ready to Assemble” really mean ready to assemble?

The saying, “You never get a second chance to make a first impression,” may be only part true. Being an undercover prospect may give you that second chance to see your product like the first time – and innovate anew.

By Robert F. Brands with Jeff Zbar

Brands is the founder of InnovationCoach.com, and the author of “Robert’s Rules of Innovation”: A 10-Step Program for Corporate Survival, with Martin Kleinman published by Wiley.

How Coaching Leads to Sustainable Innovation

Monday, April 18th, 2011

Successful and sustainable Innovation cannot be achieved without proper training and coaching from the leaders of an organization. Employees should be given the basic tools in the form of knowledge in order to create and improve their skill set. Any business can be optimized with the right Innovation coach to motivate and mediate employees. The ideal coach possesses a superior skill set and experience, a deep understanding of the innovation program’s goals, and they must be self-disciplined and a great communicator in order to reach all members of an organization in both group and one-on-one settings. Complementing and supporting the CEO or Chief Innovation Officer. When all the criteria are met, the ideal innovation coach develops employees into future leaders – and that is what sustains Innovation.

The most important job of the innovation coach is to create a holistic innovative environment, of “total” innovation and a sense of curiosity and open-mindedness among employees. It is their duty to motivate and to create an atmosphere of camaraderie where ideas are welcome. By giving employees just the right amount of support and motivation, an innovation coach can push the team towards their maximum performance.

Think about the amount of time throughout the workday that employees spend on their day to day duties versus how much time they spend on brainstorming new concepts and perspectives. When a team member does think of a new idea, do they follow through, or is it lost in the shuffle? That is why choosing the ideal coach is so important as part of the new product development process. An Innovation coach can implement structured repeatable processes that a team needs to sustain innovation, as well as provide feedback and support to all members of the team. In order to accomplish that, here are some coaching tips.

Share the joy. As well as the frustrations – communicate what is working and not working with your team.

Newbies count. Ensure that newcomers to the team, as well as new managers, are included in all training/coaching programs. Keep everyone on the same page.

The one-on-one touch. Individual coaching provides the privacy and attention that breeds success. Generally, discussions about areas of improvement are much better received when done privately and away from the ears of co-workers. These private coaching sessions can be invaluable in developing future team leaders.

Choosing the right leader is critical for your organization, and will result in a pattern of sustainable Innovation. For more Tips, see Robert’s Rules of InnovationTM by Robert F. Brands with Martin J. Kleinman, published in March 2010 by Wiley.

Value Proposition: The Key to Successful Innovation

Monday, April 4th, 2011

What defines successful Innovation? Innovation is the process of using intellectual capital to create new products or services that generate positive business results in the form of financial returns. Discovering new findings then spurs more innovation which leads to further financial returns, and so on.

Innovation is successful when positive outcomes result in return on investment (ROI). That is why Value Creation is so important. Adding perceived value to a new product or service will drive ROI. The value proposition is the key to successful innovation. Develop an innovation with high perceived value to your customer, and strong sales will follow.

It’s all about understanding your customer and giving them what they want. Customer input and feedback is key. Look at Ford for example. The car manufacturer observed and listened to their large customer base on what they wanted in a car. They launched the “Your Ideas” initiative that invited people to make suggestions for improvement in all areas of comfort, convenience, connectivity, performance and safety. The result? Ford added iPod, MP3 player and USB connections, touch screens, voice activated communication systems, intelligent push-start buttons and more. Sales are soaring – not because of the traditional four wheels and performance but because of perceived value added features. Ford Motor Company now has the highest customer satisfaction rating among all major automakers.

When was the last time you tried or experienced your product or customer experience? Create value and not just onerous processes. Consumer input should be considered at multiple stages of your new product development process in order to increase perceived value. Enhanced product value means higher margins, greater returns, improved loyalty and increased stakeholder value.

Finally, when you find that delicate balance between cost, manufacturability and consumer perceived value, be sure to protect your intellectual property (IP) portfolio through patents. Invest the time and money into constantly updating patents and managing your product or service portfolio because it will lock in the value of your Innovation IP.

For more tips on Innovation and Value Creation, look for Robert’s Rules of Innovation. Robert Brands is the founder of InnovationCoach.com and the author of “Robert’s Rules of Innovation”: A 10-Step Program for Corporate Survival, with Martin Kleinman, published by Wiley.

The Five Myths of Innovation

Wednesday, March 16th, 2011
Three authors writing in the MIT Sloan Management review claim to have uncovered 5 ‘myths of innovation’. In brief they are: 

1. The Eureka Moment. Many people think that innovation is based on a blinding flash of inspiration but the truth is more prosaic. Innovation is 5% inspiration and 95% perspiration. Most companies have plenty of good ideas but have poor processes for evaluating and developing the best ideas. (more…)

Ten Principles Which Spell Continuous Innovation

Wednesday, March 9th, 2011

Many people have tried to define a process for innovation, but most are too abstract for me. I like the easy to remember approach found in “Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival,” by Robert F. Brands. It seems to be more concrete, and chronicles several decades of practical experience to solidify the principles which together spell INNOVATION.

Read more: http://www.businessinsider.com/ten-principles-which-spell-continuous-innovation-2011-3#ixzz1G8RsQjuJ