Friday, July 16, 2010

Evolution And Innovation: what's the difference?

When you see something new, how often do you really see it as innovative? These days, technology makes our whole world smaller, and, chances are that when you see something new, it has been done before in one form or another. Does that make it any less innovative? Is most modern innovation really just evolution?

One impending product, which is being promoted as a great innovation, is the electric car. Electric cars aren't exactly new, in fact, I had one when I was about 10 years old. Sure it could only carry 6 gun brandishing G.I. Joes, and the battery was about half the entire mass of the vehicle, but I had one nonetheless. In fact, at the start of the 20th century, almost a third of all automobiles sold in the U.S. where EVs (electric vehicles).

Geeting back to more recent times, in the U.K., the diminutive G-Whiz, which is apparently the world's best selling electric car, is more Golf Buggy than a modern car. In fact, if you have more than one friend, or want to travel more than 48 miles, you had best look elsewhere.

Japan, of course, have the iconic Hybrid Prius and Honda Insight (as well as a selection of other mild hybrid vehicles)which utilise energy normally lost through braking, to charge batteries, which in turn drive the front wheels. The wheels can also be driven by the petrol engine to add modest pep to progress, or take over entirely as speed rises, or battery charge drops.

The U.S. has a number of electric vehicles, including the cost prohibitive Tesla Roadster, which adds a bit of sexiness to battery vehicles (in fact it looks a bit like the aforementioned remote control vehicle that used to transport my G.I. Joes), which is, like the G-Whizz, solely dependant on battery power, and therefore, not really that practical. This is compounded by the fact that it is actually stupid fast, which is an energy hungry pursuit.

Then there is the Chevrolet Volt, which will be popping up across the globe in the next few years, under the Chevrolet, Opel, and possibly, Holden brand names. Similar in approach to the Hybrids from Japan, the Volt has both an internal combustion engine (or ICE, which is just like any contemporary petrol engine) and electric motor with batteries. It differs, however, in it's preference to drive solely from the battery pack and electric motor. The ICE actually serves as a generator, creating electricity to charge the batteries. Pretty innovative, right?

Well, sort of. Submarines have been doing this for decades. Of course the Chevrolet Volt will also have the benefit being plugged into the garage wall when you are at home, which wouldn't be advisable for U-boat Captains.

So what is the difference between Evolution and modern Innovation? Application and time.

Innovation can be the start of a new process, so looking to other industries to solve your own problems, can make you an innovator in your own industry.

Evolution is the rest of the industry trying to catch up to you.

Friday, July 9, 2010

Are You A Good Listener?

Yesterday, I attended an Innovation Forum hosted by Gympie Regional Council. I wasn't quite sure what to expect, nor what my role would be exactly, but, was very surprised with the synergy amongst speakers, despite their differing positions within the customer, consultant and provider spectrum. The most common theme was a need to analyse your business, by listening to both internal and external sources. Today, I'll cover the external side of things, and, hopefully encourage you to do the same with your business. There were more personal stories about internal feedback, but we'll cover that later.

External Feedback

We all know that customer is key and we should be placing the relevant weight on their feedback, however, if you are getting customer feedback through measures such as a one-size-fits-all form that you periodically email at the end of a contract or task, you may be missing out on the information you really need. Life can rarely be defined in a 1-to-5 sliding scale.

One of the presentations was by Gil Harkness from the Advanced Manufacturing Advisory Service. From his list of Eight Deadly Wastes in Manufacturing, number one was Over Production and number two was Excess Inventory. Whilst the latter can be a result of the former, both can be circumvented by looking at (generally) trends in the market place, but more importantly (and specifically) by maintaining strong communication with your customer. Whether they be retail or trade customers, their own level of communication with their customers, drives their own purchasing behaviour. Maintaining a strong personal relationship is the key to identifying trends much earlier than you will get from focus groups or box ticking surveys.

Small and Micro Business owners may find yourselves a little short on feedback, since sometimes your engagement period can be a little shorter. That is where networking can serve as another valuable external input. Justin from GreenTreeIT is a local service provider in the IT industry but is also a member of a very strong network group called the "Go Getters". By collaborating with other local businesses [and yes, all you small and micro business owners know that collaboration sometimes just means a trip to the local supplier of caffeine], they can pass leads amongst themselves. This constant communication allows members to become more aware of your capabilities and also ensures that when another member tells you about an opportunity, they know that you will repay the favour when the ball is in your court. Networks are also a great way to get immediate feedback on how you operate your business, obtain ideas about how to improve it, and, it just feels good to help out a friend.

Gina Lofaro from Wordmistress is another great example of how to do it right. I turned up at one of her informal get togethers and many of the attendants were also her customers. By extending her business relationship further into the personal realm, she now has affordable and reliable access to where her customers are heading, allowing her own products and services to remain relevant to those most important to her.

So are YOU a great listener?

There are many sources on the 'net were you can find local networking groups and even get feedback without leaving your home.

For Australian small and micro business owners, I strongly recommend a trip to Flying Solo. Not only do they have great forums, but also, it is a great central location for advice on start ups and plenty of articles that actually answer questions relevant to small business, because most of the articles are written by small business owners.

But please, above all, remember to get out there, have a chat and listen!

......or you could stay at home and stare at an excel spreadsheet with survey figures on it.