Entrepreneurship and Innovation Today

The Opportunity Clinic - 28 Tactics for Managing Your Business in a Recession Part 4 of 28 “Left Behind “Opportunities

 

 

Every human concept or invention has 4 effects on society, according to Marshall McLuhan. As we switch from plastic bags to bring-your-own cloth bags in grocery stores, we see one of these unintended effects or consequences. It’s what I would classify as a “left behind” combined with a  "process" opportunity window, in the Opportunity Clinic ™ ©  jargon. I'm less of a "trends" fan, althought this does present another "opportunity window" because trends such as a shift from plastic to bring-it-yourself (biy) bags are ovbious to most people and the opportunity space gets quickly crowded out.

My good friend Susan Abbott writes about this unintended consequence of the switch in bags on her blog

What happened when everyone started bringing their own bag: the law of unintended consequences

"I just got a call from a good buddy leaving Loblaws, which recently introduced a save-the-planet charge of 5 cents a bag for those no-goodniks that don't bring their own.

"I'm just leaving the Superstore now," says buddy."Everyone is bringing their own bags.

"And you would not believe how this has slowed down the checkout process. At least 30% slower."

I witnessed this myself at a Wal-Mart. The bags are not all the same size. Some are floppy and need to be held open. One guy was handing the bags over one at a time.

Last week when I commented about the cost of human-delivered services, I wasn't even thinking about this.

Researchers like me know how much customers hate waiting in line. They hate watching inefficiency in line. It used to be just the brown rice brotherhood that took their own bag. Soon everyone will be doing it.  Yikes! "

These are touch-points for the opportunity savvy entrepreneur that can 1) recognize this change event or shift and notice the unintended consequences ..they are usually in your face if you only take the time to look and ask a few strategic questions and 2) find and fill an opportunity space or opportunity window here with your unique solution.

Here's a freebee for someone..... design a cloth bag holder for your store-bought cloth bags, so that the checkout clerk can scan and pack groceries right away into your cloth bag, (but not for bags from the competion's store).

Related posts in this series:

The Opportunity Clinic - 28 Tactics for Managing Your Business in a Recession Part 3 of 28 Design Opportunities- Hope or Nostalgia

The Opportunity Clinic - 28 Tactics for Managing Your Business in a Recession Part 2 of 28 Innovation or Efficiency?

The Opportunity Clinic - 28 Tactics for Managing Your Business (& surviving and thriving) in a Recession Part 1of 28

Related Posts over that past year:

·         Opportunity Recognition in Difficult Times

·         Recession - Proofing your Business - Spotting & Designing Opportunities in a Downturn

·         Recession - Proofing your Business - Spotting & Designing Opportunities in a Downturn – June 25, 2008, Ontario College of Art Design, Toronto, ON

·         Recession-Proofing your Business-Strategies and Tactics for smoother sailing in turbulent seas

·         Master Class in Opportunity Recognition for entrepreneurs and intrapreneurs> May 30th 2008> University of Toronto

·         Turning Misery into Opportunity

·         Vacuum leaves pullout opportunities;

·         How will baby boomers handle the recession? Zoomers, Doomers, Gloomers, Opportuneurs

·         Recession, Depression and Shortages as Opportunities

·         Restructuring of American Business-A New Business Model?

·         Using New Yorker Cartoons for Opportunity Recognition /Sense-making & Pattern Recognition

·         Text Mining for S&T Scouting, Foresight and Opportunity Recognition

·         The Opportunity Clinic-swapping opportunity scenarios 08-002

Walter Derzko

 

Every human concept or invention has 4 effects on society, according to Marshall McLuhan. As we switch from plastic bags to bring-your-own cloth bags in grocery stores, we see one of these unintended effects or consequences. It’s what I would classify as a “left behind” combined with a  "process" opportunity window, in the Opportunity Clinic ™ ©  jargon. I'm less of a "trends" fan, althought this does present another "opportunity window" because trends such as a shift from plastic to bring-it-yourself (biy) bags are ovbious to most people and the opportunity space gets quickly crowded out.

My good friend Susan Abbott writes about this unintended consequence of the switch in bags on her blog

What happened when everyone started bringing their own bag: the law of unintended consequences

"I just got a call from a good buddy leaving Loblaws, which recently introduced a save-the-planet charge of 5 cents a bag for those no-goodniks that don't bring their own.

"I'm just leaving the Superstore now," says buddy."Everyone is bringing their own bags.

"And you would not believe how this has slowed down the checkout process. At least 30% slower."

I witnessed this myself at a Wal-Mart. The bags are not all the same size. Some are floppy and need to be held open. One guy was handing the bags over one at a time.

Last week when I commented about the cost of human-delivered services, I wasn't even thinking about this.

Researchers like me know how much customers hate waiting in line. They hate watching inefficiency in line. It used to be just the brown rice brotherhood that took their own bag. Soon everyone will be doing it.  Yikes! "

These are touch-points for the opportunity savvy entrepreneur that can 1) recognize this change event or shift and notice the unintended consequences ..they are usually in your face if you only take the time to look and ask a few strategic questions and 2) find and fill an opportunity space or opportunity window here with your unique solution.

Here's a freebee for someone..... design a cloth bag holder for your store-bought cloth bags, so that the checkout clerk can scan and pack groceries right away into your cloth bag, (but not for bags from the competion's store).

Related posts in this series:

The Opportunity Clinic - 28 Tactics for Managing Your Business in a Recession Part 3 of 28 Design Opportunities- Hope or Nostalgia

The Opportunity Clinic - 28 Tactics for Managing Your Business in a Recession Part 2 of 28 Innovation or Efficiency?

The Opportunity Clinic - 28 Tactics for Managing Your Business (& surviving and thriving) in a Recession Part 1of 28

Related Posts over that past year:

·         Opportunity Recognition in Difficult Times

·         Recession - Proofing your Business - Spotting & Designing Opportunities in a Downturn

·         Recession - Proofing your Business - Spotting & Designing Opportunities in a Downturn – June 25, 2008, Ontario College of Art Design, Toronto, ON

·         Recession-Proofing your Business-Strategies and Tactics for smoother sailing in turbulent seas

·         Master Class in Opportunity Recognition for entrepreneurs and intrapreneurs> May 30th 2008> University of Toronto

·         Turning Misery into Opportunity

·         Vacuum leaves pullout opportunities;

·         How will baby boomers handle the recession? Zoomers, Doomers, Gloomers, Opportuneurs

·         Recession, Depression and Shortages as Opportunities

·         Restructuring of American Business-A New Business Model?

·         Using New Yorker Cartoons for Opportunity Recognition /Sense-making & Pattern Recognition

·         Text Mining for S&T Scouting, Foresight and Opportunity Recognition

·         The Opportunity Clinic-swapping opportunity scenarios 08-002

Walter Derzko

The Opportunity Clinic - 28 Tactics for Managing Your Business (& surviving and thriving) in a Recession Part 2 of 28 Innovation or Efficiency?

The Opportunity Clinic - 28 Tactics for  Managing Your Business (& surviving and thriving) in a Recession Part 2 of 28 Innovation or  Efficiency?

Entreperneurs must make many strategic choices. "Are we going to be innovative or efficient or possibly both vs our competition." is one of them. Firms that simultaneously engage in a high degree of both innovation and efficiency follow an approach that is often referred to in the academic business literature as an ambidextrous strategy.  Surprisingly, relatively few firms are able to balance these two approaches. Internal battles for resources often tip the scales in favor of efficiency over innovation, or vice versa. Management gurus frequently warn that simultaneously pursuing both can set the firm up for mediocre performance, yet the turbulent nature of today’s markets, cut-throat competition and despiration and anxiety from the recession create a renewed need for firms to reconsider this dual approach for longer-term success. Unfortunately, practical insights from empirical studies regarding performance benefits and implementation issues are still scant.  Perhaps this is one reason why few firms are successful in both efficiency and innovation.

 A paper called Innovation and efficiency: It is possible to have it all; this month in Business Horizons (2009) 52, 45—55 discusses the issue of an ambidextrous strategy.

From the Abstract

"In this article, the authors provide evidence—using a cross-industry survey of senior marketing managers in publicly-traded U.S. firms—that firms which successfully employ an ambidextrous strategy outperform those which overemphasize either efficiency or innovation. Furthermore, they highlight marketing’s role as an example of the often overlooked need for successful functional implementation. Finally, they provide useful methods for managers to answer three key questions: (1) Is my firm ambidextrous?; (2) Should my firm be ambidextrous?; and, if so (3) How can my firm become ambidextrous?"

 From the body of the article we find:

"Some management experts are now renewing the call for firms to break with tradition and become ambidextrous—leaders in both efficiency and innovation—to achieve competitive advantage. Two top academic management journals, Academy of Management Journal and Organization Science, recently dedicated special issues to the examination of ambidextrous organizations and how firms manage the balance between efficiency and innovation. Both special issues cite the importance for managers of understanding issues surrounding ambidextrous strategies.

Organizational inertia pushes firms down a particular path, making it harder to adapt to market changes, while short  term thinking crowds out longer-term goals. Home Depot, Dell, Airbus, Kodak, and Ford are just a few examples of companies that have recently found themselves falling behind competitors as a result of overemphasizing one goal over the other."

I wrote to the authors of the article to find out who these ambidextrous firms are and how they are fairing in the recession, compared to their non-ambidextrous competition. When I get a reply, I’ll let Smart Economy blog readers know

Source: Innovation and efficiency: It is possible to have it all; Business Horizons (2009) 52, 45—55 by Matthew Sarkees  and John Hulland n

The Opportunity Clinic - 28 Tactics for  Managing Your Business (& surviving and thriving) in a Recession Part 2 of 28 Innovation or  Efficiency?

Entreperneurs must make many strategic choices. "Are we going to be innovative or efficient or possibly both vs our competition." is one of them. Firms that simultaneously engage in a high degree of both innovation and efficiency follow an approach that is often referred to in the academic business literature as an ambidextrous strategy.  Surprisingly, relatively few firms are able to balance these two approaches. Internal battles for resources often tip the scales in favor of efficiency over innovation, or vice versa. Management gurus frequently warn that simultaneously pursuing both can set the firm up for mediocre performance, yet the turbulent nature of today’s markets, cut-throat competition and despiration and anxiety from the recession create a renewed need for firms to reconsider this dual approach for longer-term success. Unfortunately, practical insights from empirical studies regarding performance benefits and implementation issues are still scant.  Perhaps this is one reason why few firms are successful in both efficiency and innovation.

 A paper called Innovation and efficiency: It is possible to have it all; this month in Business Horizons (2009) 52, 45—55 discusses the issue of an ambidextrous strategy.

From the Abstract

"In this article, the authors provide evidence—using a cross-industry survey of senior marketing managers in publicly-traded U.S. firms—that firms which successfully employ an ambidextrous strategy outperform those which overemphasize either efficiency or innovation. Furthermore, they highlight marketing’s role as an example of the often overlooked need for successful functional implementation. Finally, they provide useful methods for managers to answer three key questions: (1) Is my firm ambidextrous?; (2) Should my firm be ambidextrous?; and, if so (3) How can my firm become ambidextrous?"

 From the body of the article we find:

"Some management experts are now renewing the call for firms to break with tradition and become ambidextrous—leaders in both efficiency and innovation—to achieve competitive advantage. Two top academic management journals, Academy of Management Journal and Organization Science, recently dedicated special issues to the examination of ambidextrous organizations and how firms manage the balance between efficiency and innovation. Both special issues cite the importance for managers of understanding issues surrounding ambidextrous strategies.

Organizational inertia pushes firms down a particular path, making it harder to adapt to market changes, while short  term thinking crowds out longer-term goals. Home Depot, Dell, Airbus, Kodak, and Ford are just a few examples of companies that have recently found themselves falling behind competitors as a result of overemphasizing one goal over the other."

I wrote to the authors of the article to find out who these ambidextrous firms are and how they are fairing in the recession, compared to their non-ambidextrous competition. When I get a reply, I’ll let Smart Economy blog readers know

Source: Innovation and efficiency: It is possible to have it all; Business Horizons (2009) 52, 45—55 by Matthew Sarkees  and John Hulland

The WBT Showcase March 24-25, 2009

The WBT Showcase March 24-25, 2009, is an elite international event that showcases prescreened, cutting-edge, first-to-market companies and technologies emanating from the private sector, top universities, federal labs, agencies and research institutions, to an audience of the world's leading seed investors, venture capitalists and Fortune 1000 licensing experts.

Applicants are screened by a national panel of seed investors, venture capitalists and corporate licensing executives. Up to one hundred (100) presenters are chosen to make a 6-minute presentation. In the weeks leading up to the Showcase presenters are provided guidance on their 6-minute presentations and groomed by individually assembled mentor teams comprised of seasoned experts. All presenters are also eligible to compete for selection as a "World's Best Technology" where investors and licensing scouts ultimately select the top 3 most promising technologies, designating one technology to receive the "Best of Show" award. Presenting technologies represent a convergence of industry sectors including Lifescience, Advanced Materials, Energy, Software, Semiconductor and Agriculture, to name a few.

Technologies are judged on the following basic criteria:

Is it a Platform Technology that could spawn many products?
Is it First in the Space, having the potential to give rise to a whole new industry?
Is it Close to Market, having few barriers remaining to commercial application?

[N.B. The deadine for submissions for 2009 has passed but it's good to keep in mind for 2010]

http://www.wbtshowcase.com/wbt/web.nsf/pages/overview.html

Multiple tactics for solving a problem yield better results, MIT study finds

Multiple tactics yield better results, study finds
No matter what the problem is, there is no one right way to solve it, according to an MIT Sloan Management Review study. Managers overwhelmingly look for a silver bullet solution, but the study shows that by pursuing only one course of action managers dramatically lower their effectiveness. The study found managers who try four or more tactics for solving a problem are 10 times more likely to have an impact than managers who only look at one method. Financial Post (Canada) (1/15)

(Hat tip to Gray Hammond for alerting us to this story)

Walter Derzko

Why it's so hard to say "no" when everyone says "yes" The Conformity Trap

Why it's so hard to say "no" when everyone says "yes"
Every entrepreneur knows how tough it can be to contradict the conventional wisdom, to zig when everyone else is zagging. A study in the journal Neuron shows why: When an individual holds an opinion that goes against the others in a group, the body sends an "error signal" by firing up a zone known as the "oops area" of the brain while slowing down the so-called "reward area." "Our brains are exquisitely tuned to what other people think about us, aligning our judgments to fit in with the group," a psychiatry professor at Emory University said.

"We show that a deviation from the group opinion is regarded by the brain as a punishment," said Vasily Klucharev, postdoctoral fellow at the F.C. Donders Centre for Cognitive Neuroimaging at Radboud University Nijmegen in the Netherlands and lead author of the study.

This study confirms what I've noticed with many budding entrepreneurs-they fall into what I call the "Conformity Trap". It shows that most people are hardwired "not to be Opportunity seekers or to look for outliers in patterns" It demonstrates why so many people were in denial in Spring and Summer of 2008 that a recession was imminent despite the  overwhelming evidence and will likely miss the recession bottom and resulting opportunities because they will be paralyzed by anxiety, fear and inaction --natural self protecting mechanisms, that we have to overcome. --Walter Derzko

 

The two leading theories of conformity are that people look to the group because they're unsure of what to do, and that people go along with the norm because they are afraid of being different, said Dr. Gregory Berns, professor of psychiatry and behavioral sciences at Emory University School of Medicine in Atlanta, Georgia.

Berns' research, which he describes in the book "Iconoclast: A Neuroscientist Reveals How to Think Differently," found that brain mechanisms associated with fear and anxiety do play a part in situations where a person feels his or her opinion goes against the grain."

 CNN (1/15)

(Hat tip to Gray Hammond)

Walter Derzko

Lecture - Technological Innovation and Economic Development in Times of Crisis

Lecture - Technological Innovation and Economic Development in Times of Crisis

CHALLENGES AND OPPORTUNITIES FOR INTERNATIONAL COOPERATION

Toronto, Jan 16, 2009

Speaker-Calestous Juma

Professor of the Practice of International Development, Harvard University

About the Speaker

Prof.  Juma  is  a  former  Executive  Secretary of  the  United  Nations  Convention  on Biological  Diversity  &  Founding  Director  of  the  African  Centre  for  Technology  Studies  in  Nairobi.  He  also  served  as  Chancellor  of  the  University of  Guyana.  He  has  been  elected  to  several  scientific  academies  including  the  Royal  Society  of  London,  the  U.S.  National  Academy  of  Sciences,  the  Academy  of  Sciences  for  the  Developing  World  (TWAS),  the  UK  Royal  Academy  of  Engineering  and  the  African  Academy  of  Sciences.  He  has  won  several  international  awards  and  honorary  degrees  for  his  work  on  sustainable  development.  He  holds  a  Ph.D.  in  science  and  technology  policy  studies  and  serves  on  the  board  of  One  Laptop  per  Child  Foundation.  He  is  lead  author  of  Innovation:  Applying  Knowledge  in  Development  and  Freedom  to  Innovate:  Biotechnology  in  Africa’s  Development  and  co‐editor  of Engineering Change: Toward a Sustainable Future in the Developing World.

For more information please contact us at [email protected] or visit www.mrcglobal.org

DATE | TIME | LOCATION

January 16, 2009

12:30PM - 1:30PM

McLaughlin-Rotman Centre for Global Health

University of Toronto

Medical Sciences Building

1 King's College Circle, Room 2172

Toronto