Innovation means so many things to so many people.

When most people think of innovation, they will typically recall large scale change or new products and services that created a step change.

But innovation does not always need to be about the next big idea.  Innovation is often about the minutiae, and the small changes in the right direction that result in a stepped change in the result or outcome of the small changes well implemented.

There is also a lot of talk (especially in Europe and the US) about design thinking, and design centred innovation.  In Australia, for Australians, design is often akin to new products, and the ‘physical; but is it more?

It is easy enough to cite Apple and the iPod or iphone (or any of their products) as great examples of design led innovation, and design at the centre of a products success.  This is an example of the physical aspect of design.

However, when design is defined as ‘the true meaning’ of something, it can take on a new world of opportunity, and provides a different lens through which to view the world and our interactions.

Finding the meaning in a product, service or experience is not a straightforward process – and can require detailed ethnographical studies and years of understanding of the ‘why’.

Yet, finding the true meaning behind a service or a product (or an experience) is the key to innovation and true ‘design’ of a new outcome.  So much of what we consume on a daily basis has meaning.  Why do we really drive the car we drive (for most of us, it is more than getting from A to B), why do we wear the clothes we do…even the humble suit is a derivative of the suits of armour worn in the 14th Century that were worn to provide status and protection.

We are not sure systemisation is even a word.

What we do know is that a set of processes and systems associated with innovation, mean an organisation has a better chance of developing innovative ideas, brands, experiences and products.

Firstly, we need to point out that ideas are not innovation; they are one part of the innovation process.  As one leader in innovation at Bain consulting taught me some years ago – just doing something differently is innovation, you do not need the next big idea; it is the doing that is the most important part of innovation.

This is not to say ideas are not good, they are the lifeblood of innovation and creativity and a successful organisation.  At the same time, organisations and CEO’s who now claim to be ‘lacking ideas’ are the very same organisations and leaders that failed to put systems and process around those ideas, so that they could be assessed, reviewed, prototyped and implemented.

In our experience, the best way to ‘kill’ the flow of ideas in an organisation is to do nothing with them.  People soon stop contributing ideas if nothing is done with them.

Microsoft is a great recent example of an organisation who is starting to understand the importance of innovating out of the situation they face.  They have achieved this through applying a system of capturing ideas, testing these ideas, and them delivering on the ideas that show potential.

The foray into gaming, and the xBox 360 was the first product to inform Microsoft of the power of a planned approach to new product design and development.  For Microsoft, the first steps were to listen to what their customers wanted!

These very same approach has been extended into the development of Windows.  Remember the Windows 7 campaign that focused on people asking for a feature, and then Windows providing it?  This is a new approach from Microsoft, but an approach that hints at the infectious nature of a successful approach to innovation.  People are now seeing their ‘ideas’ come to life…and this is a very engaging quality for any organisation to possess.

This points at Microsoft learning from its previous successes, and ‘nurturing’ a new and exciting approach to new ideas and implementation.

There is never been any doubt about the resources at Microsoft, and whether nor not they have the right people or brand.  For Microsoft it has been about learning from their successes and embedding these behaviours across the organisation in a systematic way; this is innovation.

For now, it looks like Microsoft may be getting their innovation mojo back.  Time will tell…what do you think?

By now you would’ve heard of the Plastiki, the 60 foot catamaran made of recycled PET and reclaimed plastic bottles, that journeyed from San Francisco to Sydney recently.

The CNN called it a “message in a bottle”. Not only is it an inspiration to encourage others to use their imagination and ingenuity to tackle real-world problems, but it’s also an excellent case study in change-inspired innovation.

The project itself was the brainchild of David de Rothschild. His personal catalyst for action was a 2006 UN report on how pervasively plastic is littering the world’s oceans.

CHANGING INDUSTRIES THROUGH INNOVATION

Prior to setting sail, David said, “What the expedition is doing is innovating new materials. Even if we never set sail, Plastiki has the ability to change an industry and industries.”

Fast forward 180 days and safely birthed in Sydney, he is now in talks with Billabong about making a surfboard fin from Seretex, a material that was developed during the process of building this unique sailcraft.

INNOVATION CAN HAPPEN UNEXPECTEDLY

He is quoted in the Sydney Morning Herald as saying,“Innovation came through the most unexpected places and in this instance through trying to find a material that would be suitable for Plastiki’s superstructure.”

INNOVATION CAN CHANGE VALUE PERCEPTIONS

What’s interesting is that he has no clear path for how this material will be used in industry, but is “positive it will change the value perception of what is now seen as waste, as a resource.”

David talks about his interest in the brand Billabong – to him they are a custodian of the ocean and their users are in the water everyday where they can see what happens…” why can’t they become ocean scouts?”

He is searching for companies that are not afraid to “ think outside the box and not only influence the consumer, but business as well.”

AUTHENTICITY TRIUMPHS FUNCTIONALITY

And a final quote from the Sydney Morning Herald article: “…we’ve got to change the way we view a product; a product ultimately should be able to tell a story and that story should have authenticity.”

In our approach, we talk about concept-led innovation, where our focus is on finding, prototyping and selecting concepts for market.

More recently, designers have started to play an increasingly important role in business and business design.  For Australians, when we think of design, we think of a look or a feel, and we may specifically think of fashion or furniture.  But for the pure designer, design is simply “the way things work”

In this context, the significance of design to business makes perfect sense; across products, services and experiences.

Most recently, Warren Berger wrote the four phases of design thinking for Harvard Business Review.  The thing about these stages is that they are very similar to the four staged approach we take, through INsights and id.eation (questioning and immersing), genesis and FRUIT.ion (prototyping and committing),

This article outlined the four important approaches to design that ll ‘design thinkers’ apply.  Incredibly, all non-designers can benefit from this approach.

In summary, these four phases are:

1.  Question

Often this is the starting point in the design process, and it can have a profound influence on everything that follows… the importance of asking “stupid questions”–the ones that challenge the existing realities and assumptions in a given industry or sector.

In a business setting, asking basic “why” questions can make the questioner seem naïve while putting others on the defensive (as in, “What do you mean ‘Why are we doing it this way?’ We’ve been doing it this way for 22 years!”). But by encouraging people to step back and reconsider old problems or entrenched practices, the designer can begin to re-frame the challenge at hand — which can then steer thinking in new directions. For business in today’s volatile marketplace, the ability to question and rethink basic fundamentals — What business are we really in? What do today’s consumers actually need or expect from us? — has never been more important.

2.  Care

Focus groups and questionnaires don’t cut it; designers know that you must care enough to actually be present in people’s lives.

It’s easy for companies to say they care about customer needs. But to really empathize, you have to be willing to do what many of the best designers do: step out of the corporate bubble and actually immerse yourself in the daily lives of people you’re trying to serve.

3.  Connect

Designers have a knack for synthesizing–for taking existing elements or ideas and mashing them together in fresh new ways. This can be a valuable shortcut to innovation because it means you don’t necessarily have to invent from scratch. Apple and Nike are great examples of “smart recombinations”

4.  Commit

This is where prototyping is so powerful.  It’s one thing to dream up original ideas. But designers quickly take those ideas beyond the realm of imagination by giving form to them. Whether it’s a napkin sketch, a prototype carved from foam rubber, or a digital mock-up, the quick-and-rough models that designers constantly create are a critical component of innovation — because when you give form to an idea, you begin to make it real.

Today, many companies find themselves operating in a test-and-learn business environment that requires rapid prototyping. Which is just one more reason to pay attention to the people who’ve been conducting their work this way all along.

To learn how manufacturing CEO’s and other senior leaders view their industry’s competitiveness around the world, the Global Manufacturing Industry group of Deloitte Touche Tohmatsu (Deloitte) and The U.S. Council on Competitiveness (Council) have undertaken a multi-year Global Competitiveness in Manufacturing initiative.

The initiative is based, in part, on the responses of more than 400 senior manufacturing executives worldwide to a wide-ranging survey discussing the current business environment and global competitiveness in the manufacturing sector. The study also draws on select interviews with key manufacturing players as well as unique insights provided by the professionals at Deloitte, the Council, and Clemson University.

Earlier this year, Bloomberg BusinessWeek published its list of 50 most innovative companies (in partnership with Boston Consulting Group) and for the first time, the majority of companies were headquartered outside the US. 88% of executives in China said they were raising their innovation budgets this year, followed by 82% in South America and 73% in India. The rate fell to 48% in the U.S., ahead of only Japan, where just 34% of executives said their companies planned to increase innovation spending. All of which suggests the U.S. may not be dominating the innovation list again soon.

While many are questioning the pace of innovation, Apple (#1) and Google (#2) provide inspiration to many creative entrepreneurs who seek innovation. To help spur thinking, we’ve recently covered how to inspire innovation in your company and some of the most innovative work environments.  See below for current trends in innovation.

Innovation in Social Cause Business Models. NBA legend Magic Johnson recently spoke at Wharton’s first Social Impact Forum saying, “Legacies are not built on how much money is made, because after all there are a plethora of millionaires in the world. Instead, they are built on how many people can be touched with the amount of money made. Individuals are able to set themselves apart by helping communities get on their feet.” Today, it has become fashionable to do good and many entrepreneurs are building businesses with generosity at their core focusing on urban renewal, children’s initiatives, and even the basics such as food and water.

Consumer Trend in Customization. The customization trend has been ongoing from Build-a-Bear Workshop to the Nike ID project to Pandora (listening to Modest Mouse on Pandora as I write this blog post) to more recent projects with Heineken, Converse, and coffee based on your fingerprints. You can set your product apart by enabling consumers to customize to their liking. Among the innovations we share is Red Moon’s fully customizable dry pet food based on a variety of meats, produce and supplements. Dog owners choose a base formula, indicated their dog’s activity level, select the kibble size, and in supplements.

Green Living. From wearing a potted plant pedant around your neck to eco-sexual dating to traveling to an eco-certified resort in Bali, there are many fun ways to embrace a green life and share it with pride.

Healthy Eating. With US leading the race for most obese nation, a trend towards healthy eating is emerging. From a new diet scale that recommends meals, to an ice cream shop that crowdsources organic fruits, there are new ways to enjoy a healthy lifestyle.

Upscaling Affordable Food. Beyond the trends towards healthy sustainable eating, the 2 trends rise to the top in the era of consumer saving and the vigilante consumer are: Upscaling the Downscale and Keeping It Real. Stimulate your thinking and your taste buds as you read about salmon infused vodka, raising chickens in urban backyards, and upscale burger joints.

Smart Design: The Breakup Letter from Smart Design on Vimeo.

The Breakup Letter is a design research tool that Smart Design uses to understand the emotional connection between people and their products, services, and experiences.

At IIT’s 2010 Design Research Conference, Smart Design asked participants of their Sex Ed workshop to test out this tool by writing and reciting a Breakup Letter. Each participant took 15 minutes to write a letter and then shared their stories of finally moving on.

We all loved the Old Spice campaign.  It was such a clever and engaging mix of character, script, set and simplicity that entertained us.

In fact, we were so entertained, that it is regarded as one of the most successful social media campaigns of all time.

But, the very reason a brand invests in such a campaign is to, well, sell more of what they are promoting.

You can argue that there is a branding and awareness benefit – blah, blah, blah, but all this is a waste of time and money if it does not equate to increased sales?

Now that all the hoopla has blown over, and the smoke has cleared, people are taking a lot of interest in actual ‘results’ from the campaign – you now; what is the bottom line?

With such an enormously successful campaign online, it is a fair question to ask too.

From early reports – the numbers are not looking so good (Mike Ryan over at Yahoo TV in fact reported that there has been a drop in sales?)

From our perspective – you have to wonder how much more ‘successful’ this campaign had been for Old Spice, if they had taken the time to actually develop an entirely new product line, or consider a new sub-brand (to remove the stigma associated with Old Spice – i.e. “my father use to wear that stuff”).  Imagine if Procter and Gamble ( the brand behind the Old Spice brand), had seen this exercise as an exercise in innovation; and taken the time to really capitalise on what went on to be a highly successful campaign!

Granted, when you are focused on ad land and in the midst of a campaign, it is difficult to see the forest from the trees – and you always think that the campaign will translate to sales…but who did some research to understand what the numbers for Old Spice really looked like, and who was buying it?  Rub these numbers against the target audience – and the actual consumers of the recent campaign, and we think there would be a serious mismatch.

20/20 hindsight is a wonderful thing – but lost opportunity off the back of the most successful social media campaign is not.

This must prompt brands and consumers alike to ask “what good is social media anyway”.  Surely it is time to raise the bar on the conversation and recognise that at the centre of every ‘successful’ campaign there needs to be an even more successful product and innovative product development.

Or is this why the campaign was such a success – people did not feel like they were being sold too as they quipped “I wouldn’t buy it anyway”…

It will be even more entertaining to see how the campaign is regarded at upcoming ‘ad awards’ – no doubt it will win numerous awards and recognition; and no doubt business will ask again “did it generate any sales?”

And rightly so…

Update (thanks to Yahoo TV): A representative for the Old Spice ad campaign clarifies the sales trend and goal of the “Old Spice Man” commercials as follows: “[The] campaign is for Old Spice Body Wash overall, not specific to just Red Zone After Hours which just happens to be the body wash bottle used in the TV spots….Since the Smell Like A Man, Man campaign broke in February, Old Spice has month over month strengthened its market position and is now the number one brand of body wash and anti-perspirant/deodorant in both sales and volume with growth in the high single/double digits.” – ah, sphinn

BBH London have produced some great branded content over the last few years.

This is one of our favourites…does your brand have a story like this?

We see so many brands that have amazing stories – but no-one is telling them.

When was the last time you thought “I wish I had thought of that?”

How does someone seemingly ‘re-invent’ a category or create a whole new category?

Often, these epiphanies seem the most obvious – where the new idea or refreshed thinking is blindingly obvious; once unveiled.

We recently came across a very recent idea; the cleanbottle.  For cyclists, and most sports people – the sports bottle (or bidon for a cyclist) has a limited life, often as a result fo the build up of mould and grime inside the bottle rendering it unhygienic.

The cleanbottle is a simple idea, where both ends of the bottle can be removed, making it very easy to clean the bottle and dry it out so as not to gather mould.

How did David Mayer from Cleanbottle come up with the idea. What are the ‘things’ or challenges in your business that could do with a ‘rethink’ or re-invention?

The process of re-invention often comes as a result of being totally immersed in the problem or challenge and defining it clearly first.  As Charles Kettering uttered in the mid 20th Century “A problem thoroughly understood is always fairly simple…”

Are the challenges or problems in your business clearly defined?