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	<title>Conquering Innovation Fatigue: Helping Inventors, Entrepreneurs and Leaders Find Innovation Success &#187; business models</title>
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	<link>http://www.innovationfatigue.com</link>
	<description>Overcoming Barriers to Personal and Corporate Success</description>
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		<title>Update on Innovation in Brazil, with a Highlight on Education</title>
		<link>http://www.innovationfatigue.com/2010/06/the-future-of-innovation-in-brazil/</link>
		<comments>http://www.innovationfatigue.com/2010/06/the-future-of-innovation-in-brazil/#comments</comments>
		<pubDate>Wed, 16 Jun 2010 00:43:38 +0000</pubDate>
		<dc:creator>Jeff Lindsay</dc:creator>
				<category><![CDATA[Brazil]]></category>
		<category><![CDATA[South America]]></category>
		<category><![CDATA[business models]]></category>
		<category><![CDATA[corporate]]></category>
		<category><![CDATA[creativity]]></category>
		<category><![CDATA[innovation]]></category>

		<guid isPermaLink="false">http://www.innovationfatigue.com/?p=698</guid>
		<description><![CDATA[My recent visit to three beautiful regions of Brazil included opportunities to learn more about the economic climate and the future of innovation. Entrepreneurial opportunities are tremendous for innovative and bold Brazilians, in spite of the challenges that come with extremely expensive capital, high taxation, and occasional bureaucratic barriers. Brazil continues rising rapidly, on its [...]]]></description>
			<content:encoded><![CDATA[<p>My recent visit to three beautiful regions of Brazil included opportunities to learn more about the economic climate and the future of innovation. Entrepreneurial opportunities are tremendous for innovative and bold Brazilians, in spite of the challenges that come with extremely expensive capital, high taxation, and occasional bureaucratic barriers. Brazil continues rising rapidly, on its way to be one of the world&#8217;s great superpowers. The spirit of Brazil was contagious!</p>
<p>The opportunities from the agricultural potential of Brazil are mind-boggling. The biodiversity of the few parts I saw was overwhelming, and that was only a minute sampling. By strengthening the airport system in Brazil, there are many opportunities to move away from supplying bulk commodities like fiber and coffee to providing value-added consumer products shipped directly to consumer markets. A nationwide effort to enhance transportation is needed (and is underway). One product area where I eagerly await further progress is in the field of beverages. For example, all over Brazil there are drinks based on the <a href="http://en.wikipedia.org/wiki/Guarana">guarana</a> berry from the Amazon, including the wildly popular Antarctica brand carbonated beverage. These are more popular than cola beverages and frankly, they taste much better. This one of many Brazilian flavors waiting to emerge into the US market. </p>
<p>Brazilian businesses have also evolved a variety of interesting business models, including efficient methods for managing buffets where you pay by the kilo. I would welcome that approach here. </p>
<p>The business area that most impressed me for its innovation was in the field of education, and distance education is particular. I had the privilege of meeting with the CEO of <a href="http://www.posead.com.br/">POSEAD</a>, a remarkable company offering distance learning service to Spanish and Portuguese speakers. They have drawn upon 40 years of experience in a non-profit educational organization, <a href="http://www.ceteb.com.br/index.php">CETEB</a>, along with many years of commercial experience, to create a rapidly growing business that solves some of the real problems of education and training in emerging nations, where the cost of commuting to a school or training center may exceed monthly incomes. They have developed advanced diagnostics and delivery systems to really understand what a student is doing, what they need, and how to get them to move forward. There are so many mistakes that can be made by newcomers in this area, especially in meeting the needs of Spanish and Portuguese speakers, but they&#8217;ve figured out how to avoid them and have created a remarkable efficiency in their systems that results in extremely low cost. </p>
<p>Some of the innovation in education goes back to a remarkable woman, Rosa Pessina, who long ago recognized that the pressure to build more schools to accommodate burgeoning classes in the earlier grades was treating a symptom, not the cause of the problem. Her analysis showed that class sizes were suffering because too many students were failing to advance in school, resulting in low graduation rates and high class sizes as kids went back through the same grade more than once. She then developed programs for accelerated learning to help these kids quickly get back to the right grade for their age, making the students feel better about the class they were in and enhancing motivation. This was the beginning of the non-profit organization <a href="http://www.ceteb.com.br/index.php">CETEB</a>, and those who participate in its accelerated learning programs have a 94% success rate, if I remember correctly&#8211;an extremely high percentage that go on to graduate. CETEB&#8217;s services include distance learning tools to help Portuguese and Spanish speakers. There is a huge opportunity here for the United States, where we have the children of many Spanish-speaking immigrants doing poorly in the schools. If they do not gain an education, the risk for ongoing poverty and crime is much higher. By accelerating their progress and helping them gain education at low cost, remarkable social good could be achieved here in the U.S. Governors, CETEB awaits your call!</p>
<p>There are layers of innovation in other areas in both CETEB and POSEAD, including how they quality and prepare content, how they form alliances, how they manage the challenges of certification and regulatory burdens, and in general how they identify and meet the needs of students and communities. There are brilliant minds at work here, and I feel that it&#8217;s time for US schools, companies, and governments to explore collaborative efforts. I&#8217;d be happy to help make a connection.  </p>
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		<title>Altruistic Innovation in Africa</title>
		<link>http://www.innovationfatigue.com/2010/04/africa-social-entrepreneurship/</link>
		<comments>http://www.innovationfatigue.com/2010/04/africa-social-entrepreneurship/#comments</comments>
		<pubDate>Wed, 28 Apr 2010 15:00:04 +0000</pubDate>
		<dc:creator>Jeff Lindsay</dc:creator>
				<category><![CDATA[Africa]]></category>
		<category><![CDATA[business models]]></category>
		<category><![CDATA[collaboration]]></category>
		<category><![CDATA[consumer products]]></category>
		<category><![CDATA[incentives]]></category>
		<category><![CDATA[vision]]></category>

		<guid isPermaLink="false">http://www.innovationfatigue.com/?p=672</guid>
		<description><![CDATA[In Conquering Innovation Fatigue, we begin with an examination of some of the reasons that people pursue innovation. Not all innovation is driven by a desire for wealth. In fact, a large number of innovators are more interested in seeing their work make a difference in the world than in becoming rich (many want both, [...]]]></description>
			<content:encoded><![CDATA[<p>In <em>Conquering Innovation Fatigue</em>, we begin with an examination of some of the reasons that people pursue innovation. Not all innovation is driven by a desire for wealth. In fact, a large number of innovators are more interested in seeing their work make a difference in the world than in becoming rich (many want both, but the desire to see real results from one&#8217;s work is often essential). Social entrepreneurship and humanitarian innovation provide evidence of this. In the book, we highlight <a href="http://empowerplaygrounds.org/">Empower Playgrounds</a> (EmpowerPlaygrounds.org), the non-profit innovation engine that is bringing educational success to thousands of African children by creating playground equipment that generates power for LED lamps that children can take home so they can study and do homework after the finish their chores at home. Something as simple as a portable electric lamp, charged by innovative playground power generators, makes the difference between educational failure and graduating with opportunities for college. Many thanks to Ben Markham, the CEO of Empower Playgrounds, for recognizing the need and driving so much collaborative innovation to bring hope to western Africa. </p>
<p>Another great story out of Africa is the Forbes article, &#8220;<a href="http://www.forbes.com/forbes/2010/0510/creative-giving-sram-zambia-charity-armstrong-bicycle-economy.html?boxes=Homepagelighttop">Can This Bicycle Save Lives In Africa?</a>&#8221; by Stephanie Finch. After achieving international success with his bicycle innovations, Frederick K.W. Day noticed that many streets in Africa were lined with abandoned, broken down bikes that quickly fell apart on the rough streets of Africa. He also saw that the huge diversity of bikes being sent to Africa made it very difficult for mechanics to repair due to lack of proper parts and tools for the diverse designs. He is now working to bring rugged, low-cost, easy-to-repair bikes to Africa:</p>
<blockquote><p>Through his World Bicycle Relief charity the ponytailed entrepreneur hopes to put millions of sub-Saharan Africans aboard special heavy-duty bikes designed to withstand the continent&#8217;s rugged roads while carrying 200 pounds of cargo&#8211;enough for a weaver to bring his rugs, or a farmer to tote his produce, to market. Moreover, he aims to promote a self-sustaining bicycle economy with regional operations assembling the bikes and area mechanics trained to repair them.</p></blockquote>
<p>Frederick is making many changes in the bike as well as crafting a business model for distribution and maintenance that will meet the needs of many parts of Africa. It&#8217;s not about getting rich, but about truly making a difference in the world for thousands of people. That&#8217;s inspiring innovation! </p>
<p>What are your favorite examples of altruistic innovation or social entrepreneurship helping Africa?</p>
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		<title>Dark Energy and Dark Matter: What Astrophysics Can Teach Us about Innovation Success</title>
		<link>http://www.innovationfatigue.com/2010/03/astrophysics-and-innovation-success/</link>
		<comments>http://www.innovationfatigue.com/2010/03/astrophysics-and-innovation-success/#comments</comments>
		<pubDate>Wed, 17 Mar 2010 15:53:58 +0000</pubDate>
		<dc:creator>Jeff Lindsay</dc:creator>
				<category><![CDATA[business models]]></category>
		<category><![CDATA[collaboration]]></category>
		<category><![CDATA[corporate]]></category>
		<category><![CDATA[energizing factors]]></category>
		<category><![CDATA[management]]></category>
		<category><![CDATA[networks]]></category>
		<category><![CDATA[open innovation]]></category>
		<category><![CDATA[organizational fatigue]]></category>
		<category><![CDATA[partnerships]]></category>
		<category><![CDATA[strategy]]></category>
		<category><![CDATA[VNA]]></category>

		<guid isPermaLink="false">http://www.innovationfatigue.com/?p=589</guid>
		<description><![CDATA[In recent years, scientists have been astounded to discover that the visible universe represents just a tiny fraction of the matter and energy that governs the cosmos. Based on the motion of stars and galaxies, strange &#8220;dark matter&#8221; must be present, increasing the gravitational tug on celestial bodies more than can be accounted for by [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_598" class="wp-caption alignleft" style="width: 290px"><a href="http://www.innovationfatigue.com/2010/03/astrophysics-and-innovation-success/cosmos/" rel="attachment wp-att-598"><img src="http://www.innovationfatigue.com/wp-content/uploads/2010/03/cosmos.jpg" alt="The Matter-Energy of the Cosmos is Mostly Dark Matter and Dark Energy" title="The Matter-Energy of the Cosmos is Mostly Dark Matter and Dark Energy" width="280" height="438" class="size-full wp-image-598" /></a><p class="wp-caption-text">The Matter-Energy of the Cosmos is Mostly Dark Matter and Dark Energy</p></div>In recent years, scientists have been astounded to discover that the visible universe represents just a tiny fraction of the matter and energy that governs the cosmos. Based on the motion of stars and galaxies, strange &#8220;dark matter&#8221; must be present, increasing the gravitational tug on celestial bodies more than can be accounted for by visible matter. Further, based on the surprising discovered that the universe is expanding, not contracting under its own gravitational pull as expected, scientists have proposed that a strange, repulsive &#8220;dark energy&#8221; fills the cosmos countering gravity. The combined effect of these unseen entities, dark energy and dark matter, are so great, that they account for 96% of the matter and energy of the universe. In other words, the visible universe that we used to think is all there is actually is only a tiny fraction of what is there. What we see in the &#8220;cosmic org chart&#8221; accounts for only 4% of what really influences the cosmos. </p>
<p>It&#8217;s that way in the business world. too. Companies can create tidy org charts and draft neat process maps to describe how they work, but the unseen reality outside the visible systems may be what really dominates operations. Increasingly, experts in knowledge management are learning that easily overlooked and often invisible <span style="font-style:italic;">intangibles</span> can dominate corporate value and performance. Numerous intangible transactions may be essential to the success of a company, including casual information sharing between trusted friends, helpful exchanges of tips and best practices between employees or between external partners and internal employees, or loyalty that is gained when people are included in decision making. The invisible linkages and hard-to-observe exchanges in a company&#8217;s internal an external ecosystems may be the real engines of value creation, regardless of what is on a process map or workstream. By not understanding the value of such intangibles, corporations can easily break key linkages and crush subtle engines of value creation. </p>
<p>Many companies focus on their &#8220;value chains&#8221; &#8211; a term popularized by Michael Porter in his seminal 1985 work, <span style="font-style:italic;">Competitive Advantage</span>. The value chain describes the linear chain of events as materials and products move from sourcing through manufacturing and out to the market. It is a highly useful paradigm for manufacturing and was highly applicable to much of the economy in the era when Porter was doing his research. But since that time, the explosion of the knowledge economy has changed the way we work and create value. One of my favorite authors, Verna Allee, a revolutionary expert in knowledge management, has detailed the move from the value chain to modern ecosystems and Value Networks in her book, <span style="font-style:italic;">The Future of Knowledge: Increasing Prosperity through Value Networks</span> (Burlington, MA: Elsevier Science, 2003). Verna Allee and Associates have introduced a clever, methodical tool called Value Network Analysis for analyzing and visualizing the transactions of intangibles and tangibles that affect a business. </p>
<p>After my training in Value Network Analysis by Verna and her associate, Oliver Schwabe, an exciting new perspective on business and human behavior opened up. I have been highly impressed with the power of Value Network Analysis and the insights that it can rapidly deliver for a company. The Value Network Analysis work that <a href="http://www.innovationedge.com"><span style="font-weight:bold;">Innovation</span>edge</a> has done as part of larger projects for some of our clients has been a very exciting part of my work since joining Cheryl Perkins&#8217; exciting company. We value the tool enough that we had Verna Allee speak at the 2008 CoDev conference to introduce other business leaders to the basic concepts behind Value Network Analysis. I&#8217;m very pleased to see a community emerging of people using Value Network Analysis and developing exciting tools for it. </p>
<p>Here are some resources that you may find helpful in further exploring this area:</p>
<ul>
<li><a href="http://www.value-networks.com/">Value-Networks.com</a></li>
<li><a href="http://valuenetworks.com/public/item/209780">Hosted Value Network Tools</a></li>
<li><a href="http://www.value-networks.com/howToGuides/A_ValueNetwork_Approach.pdf">A Value Network Approach</a> (PDF) &#8211; 2002 Whitepaper by Verna Allee</li>
<li><a href="http://www.value-networks.com/caseStudies/ViagraStory22Oct06.pdf"> ValueNet Works™ Analysis for the Discovery of Viagra</a> (PDF)</li>
</ul>
<p>Part of the initial output in Value Network Analysis are maps, called &#8220;holomaps,&#8221; showing human entities as nodes and transactions of tangible or intangible items between them. There is much that can be learned from such holomaps &#8211; a topic for later discussion. For now I&#8217;ll show you two sample holomaps I created to illustrate simple ecosystems. One shows several external nodes around a manufacturer and the other shows some structure within part of a corporation. For simplicity, the maps lack all the labels explaining the transactions. </p>
<p><div id="attachment_590" class="wp-caption alignright" style="width: 590px"><a href="http://www.innovationfatigue.com/2010/03/astrophysics-and-innovation-success/vna-1b/" rel="attachment wp-att-590"><img src="http://www.innovationfatigue.com/wp-content/uploads/2010/03/vna-1b.jpg" alt="Holomap of an External Ecosystem" title="Holomap of an External Ecosystem" width="580" height="464" class="size-full wp-image-590" /></a><p class="wp-caption-text">Holomap of an External Ecosystem</p></div>
<div id="attachment_593" class="wp-caption alignright" style="width: 590px"><a href="http://www.innovationfatigue.com/2010/03/astrophysics-and-innovation-success/vna-example-2/" rel="attachment wp-att-593"><img src="http://www.innovationfatigue.com/wp-content/uploads/2010/03/VNA-example-2.jpg" alt="Holomap of an Internal Ecosystem" title="Holomap of an Internal Ecosystem" width="580" height="403" class="size-full wp-image-593" /></a><p class="wp-caption-text">Holomap of an Internal Ecosystem</p></div>
<p>One interesting approach is to use the &#8220;holomaps&#8221; you get in Value Network Analysis as tools for &#8220;what if&#8221; scenarios to explore what new partners might do for your business model, or what new business models might do for your ecosystem. Using holomaps to explore innovation ecosystems is a particularly fruitful approach for those doing open innovation and wondering who should be in their external ecosystem.</p>
<p>We have further information on this topic that we&#8217;d be happy to share with you. It&#8217;s certainly something you should look at to understand how business really works.</p>
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		<title>The Long-Tail of Innovation: Customizing Health Care Based on Patient Genetics</title>
		<link>http://www.innovationfatigue.com/2009/11/the-long-tail-of-innovation/</link>
		<comments>http://www.innovationfatigue.com/2009/11/the-long-tail-of-innovation/#comments</comments>
		<pubDate>Mon, 30 Nov 2009 18:22:19 +0000</pubDate>
		<dc:creator>Jeff Lindsay</dc:creator>
				<category><![CDATA[business models]]></category>
		<category><![CDATA[health care]]></category>
		<category><![CDATA[universities]]></category>
		<category><![CDATA[Canada]]></category>
		<category><![CDATA[cancer]]></category>
		<category><![CDATA[drugs]]></category>
		<category><![CDATA[genetics]]></category>
		<category><![CDATA[long tail]]></category>
		<category><![CDATA[Mexico]]></category>
		<category><![CDATA[pharmaceuticals]]></category>
		<category><![CDATA[Singapore]]></category>

		<guid isPermaLink="false">http://www.innovationfatigue.com/?p=414</guid>
		<description><![CDATA[One of the hottest trends for modern innovation is customization of products and services to meet the unique needs of individuals. Classic examples of business model innovation based on customization include Dell computer, who developed a suite of patented supply chain advances to assist in rapidly delivering customized computers at low cost, or Netflix, whose [...]]]></description>
			<content:encoded><![CDATA[<p>One of the hottest trends for modern innovation is customization of products and services to meet the unique needs of individuals. Classic examples of business model innovation based on customization include Dell computer, who developed a suite of patented supply chain advances to assist in rapidly delivering customized computers at low cost, or Netflix, whose supply chain and Internet-based services allow users to select from vast numbers of movies that could never be housed in a local brick and mortar store. Now IT-related businesses including eBay and hundreds of others are increasingly taking advantage of Internet tools, database systems, cookies and other ways of tracking customer preferences and patterns to provide customized offerings to appeal to the unique needs and wants of individuals.</p>
<p>The next frontier for innovation based on customization will be health care. Some think this is already happening now that health records can be electronic and advanced diagnostic tools and databases can be applied to meet patient needs, but in reality, much of health care is still based on old models of &#8220;one or two sizes fit all.&#8221; What is the right medication for a patient? In what dose? Body weight, age, and gender may be considered in writing a prescription, but there are many other factors that need to be considered, including genetics. Understanding the relationship between drugs and individual genetics represents an important frontier for innovation in medicine. Today I&#8217;d like to highlight one important example of successful research in this field.</p>
<p>Recently in Singapore, while speaking at an Innovation and Enterprise Week, I met keynote speaker <a href="http://www.cmmt.ubc.ca/research/investigators/hayden" target="_blank">Dr. Michael Hayden</a> of the University of British Columbia&#8217;s Center for Molecular Medicine and Therapeutics. (Not the same <a href="http://en.wikipedia.org/wiki/Michael_Hayden" target="_blank">Michael Hayden</a> who was a director of the CIA.) Dr. Hayden was recently named <a href="http://www.med.ubc.ca/media/Dr__Michael_Hayden__UBC_professor__named__Researcher_of_the_Year_.htm" target="_blank">Canada&#8217;s Researcher of the Year</a>. In his speech, Dr. Hayden spoke of his quest to understand the mysteries of disease and to reveal their genetic roots to thereby develop better approaches to treatment for patients. One exciting breakthrough that he mentioned, arising from collaboration with others at UBC and beyond, is the discovery that the terrible side effect of deafness that strikes many cancer patients on chemotherapy can be predicted with DNA testing. The popular and highly effective drug, cisplatin, is the problem. By understanding the relationship to genetics, high-risk patients can be identified and alternate medications can be prescribed. Finding genetic links to adverse drug reactions is a major step forward toward treatments that really match the unique nature of each patient.</p>
<p>A week after my encounter with Dr. Hayden in Singapore, I was in Mexico City&#8217;s large international airport, standing in a line, when I overheard the man behind me telling someone about his clinical work with cancer patients, and the discovery that genetics played a role in determining whether the patient would be at risk for deafness. My curiosity was aroused, so I couldn&#8217;t resist the temptation to interrupt and ask the man if he was from the University of British Columbia by any chance. Yes, in fact, he was. This was Dr. Bruce Carleton, a peer of Dr. Michael Hayden whom Dr. Hayden had mentioned in Singapore. What a small world it can be when I pay attention and reach out to others! We discussed his work briefly and I expressed my excitement at what they are doing. Today he kindly sent me a copy of his recent publication on the cisplatin work, published in the prestigious journal <em>Nature Genetics</em>. The publication is &#8220;Genetic variants in TPMT and COMT are associated with hearing loss in children receiving cisplatin chemotherapy&#8221; by J.D. Colin,  Hagit Katzov-Eckert, Marie-Pierre Dubé, Beth Brooks, S. Rod Rassekh, Amina Barhdadi, Yassamin Feroz-Zada, Henk Visscher, Andrew M. K. Brown, Michael J. Rieder, Paul C Rogers, Michael S Phillips, Bruce C Carleton, Michael R. Hayden &amp; the CPNDS Consortium, Nov. 2009. Here is the abstract:</p>
<blockquote><p>Cisplatin is a widely used and effective chemotherapeutic agent, although its use is restricted by the high incidence of irreversible ototoxicity associated with it1. In children, cisplatin ototoxicity is a serious and pervasive problem, affecting more than 60% of those receiving cisplatin2–5 and compromising language and cognitive development. Candidate gene studies have previously reported associations of cisplatin ototoxicity with genetic variants in the genes encoding glutathione S-transferases and megalin6–8. We report association analyses for 220 drug-metabolism genes in genetic susceptibility to cisplatin-induced hearing loss in children. We genotyped 1,949 SNPs in these candidate genes in an initial cohort of 54 children treated in pediatric oncology units, with replication in a second cohort of 112 children recruited through a national surveillance network for adverse drug reactions in Canada. We identified genetic variants in <em>TPMT </em>(rs12201199, <em>P </em>value = 0.00022, OR = 17.0, 95% CI 2.3–125.9) and <em>COMT </em>(rs9332377, <em>P </em>value = 0.00018, OR = 5.5, 95% CI 1.9–15.9) associated with cisplatin-induced hearing loss in children.</p></blockquote>
<p>Watch for genotyping of patients coupled with extensive research on genetics and drug performance to become a pillar for health care innovation in the future. Customization of care at many other levels can be expected as well, as long as incentives for innovation in health care remain healthy.</p>
<p>Congratulations to Drs. Carleton and Hayden and their partners for outstanding work that will drive further innovation in how patients are treated.</p>
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		<title>The Palm Pre: How a Focus on Short-Term Results Can Destroy the Fruits of Innovation</title>
		<link>http://www.innovationfatigue.com/2009/07/sprint-and-the-palm-pre/</link>
		<comments>http://www.innovationfatigue.com/2009/07/sprint-and-the-palm-pre/#comments</comments>
		<pubDate>Wed, 15 Jul 2009 13:38:32 +0000</pubDate>
		<dc:creator>Jeff Lindsay</dc:creator>
				<category><![CDATA[business models]]></category>
		<category><![CDATA[decision making]]></category>
		<category><![CDATA[economic factors]]></category>
		<category><![CDATA[fatigue factors]]></category>
		<category><![CDATA[networks]]></category>
		<category><![CDATA[start-ups]]></category>
		<category><![CDATA[will to share]]></category>
		<category><![CDATA[Palm Pre]]></category>
		<category><![CDATA[smart phones]]></category>

		<guid isPermaLink="false">http://www.innovationfatigue.com/?p=197</guid>
		<description><![CDATA[As I began writing this post, my wife was in a car a thousand miles away with a brand new smart phone. I received a call on someone else’s phone informing me that my wife&#8217;s smart phone had quit working completely after following the instructions she received from tech support to fix the GPS system [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_203" class="wp-caption alignleft" style="width: 150px"><img class="size-medium wp-image-203" title="palm-pre" src="http://www.innovationfatigue.com/wp-content/uploads/2009/07/palm-pre-140x180.jpg" alt="The Palm Pre:&lt;br /&gt; A Beatiful Phone" width="140" height="180" /><p class="wp-caption-text">The Beautiful Palm Pre</p></div>
<p>As I began writing this post, my wife was in a car a thousand miles away with a brand new smart phone. I received a call on someone else’s phone informing me that my wife&#8217;s smart phone had quit working completely after following the instructions she received from tech support to fix the GPS system in her phone. The GPS had quit working that morning after tech support had her do another set of procedures to fix another problem. Now she had no GPS and also couldn’t make or receive calls. The problem would later be resolved. I’m still not sure how much of it was due to network trouble (the black hole effect I describe below), hardware trouble, user error, and questionable tech support, but after almost 3 weeks of experience, I can say two things about the Palm Pre: 1) It is a terrific and beautiful phone with many innovations, and 2) Palm is doomed. Doomed, I fear, unless they make some changes in their business model and better consider the harmful long-term impact that some short-sighted decisions may have. The exciting work of the innovators within Palm may be destroyed, in the long run, by Innovation Fatigue Factor #5, “Flaws in Decision Making and Vision”(the subject of Chapter 9 in <a href="http://tinyurl.com/nofatigue"><em>Conquering Innovation Fatigue</em></a>).</p>
<p class="MsoNormal">The problem, in a nutshell, is that Palm and Sprint (the only network for the Pre) apparently have decided to focus on getting the limited production of Palm Pres into the hands of as many users as possible, rather than letting tech support staff have them. The quality of customer service is being deliberately sacrificed to grab more market share and get more buzz among consumers, but this may backfire and create negative buzz due to some compounding factors. Some users may be happy with what they can figure out on their own and never need tech support, but I think many Palm Pre users are likely to need support. I say this because users are not given the Palm Pre manual and the manual in PDF form is not provided on the Palm Pre, cannot be downloaded from the Palm Pre, and even if loaded onto the Palm Pre, cannot be read by its PDFView application without crashing the phone. It’s a painful irony that makes aggressive users rely more than they should on tech support, and yet tech support is in the dark. When you call 888-211-4727 for support, you will be speaking with someone who has never used the phone, perhaps never even seen one. You can usually get to a human in under three or four minutes, which is wonderful, but simple questions can take far too long to be answered, if an answer ever comes. If uncorrected, this will drive consumers away from this phone and toward the many alternatives that can do many of the same things.</p>
<p class="MsoNormal">Here’s an experience that illustrates the problem of using inexperienced tech support instead of people familiar with the phone. I had a problem with a disappearing icon. There are five icons across the bottom of the screen for a newly installed phone: one for dialing, one for contacts, one for email, one for the calendar, and one that brings up a directory of apps and services. On day two of using my phone, the email and calendar icons disappeared. I’m still not sure how. There were suddenly just 3 icons, not five. I was able to still find email by navigating through the apps, but wanted the convenience of rapid access to email that the icon provided. So how does one get it back? Nothing in the skimpy guide given to new users addressed the issue. So I called tech support.</p>
<p>After being escalated through three levels of tech support over the course of an hour, I still hadn’t found anybody who could answer that question, so I gave up when, mercifully, the signal dropped. The top-level person didn&#8217;t call back. The next day, when I had to call again for another issue, and while talking to a rep, I asked this new guy if he knew the answer to the icon puzzle. He put me on hold for about 60 seconds, and then came back with the simple solution: press any icon in the apps window for several seconds until it glows, then drag it into the row of icons at the bottom of the screen and it will stick. I was delighted. “Wow, that’s great. Do you mind if I ask why you were able to help so quickly when three levels of tech support yesterday all searching for the answer couldn’t help?” <strong>“Oh,” he said, “there’s another guy over here who owns a Palm Pre. So I asked him and he was able to show me.”</strong> Ah, someone with experience – someone with a phone!</p>
<p class="MsoNormal">Because the person I reached knew someone with experience, he was able to reach out to his local value network and get the knowledge I needed, and he could do it in 60 seconds, compared with a fruitless hour of my time and Sprint’s when talking to people without experience. My wife and I have been contacting tech support a lot– far too much, but usually out of necessity–and nearly everyone I’ve talked with didn’t know much about the phone at all. Thank goodness one person had access to someone who had one.</p>
<p class="MsoNormal">By going for short-term market share by getting more sets into the hands of the public instead of into the hands of your own support staff, Palm is taking a huge risk and incurring costs that may well outweigh the benefits of the accelerate distribution to the public.</p>
<p class="MsoNormal"><span id="more-197"></span></p>
<p class="MsoNormal">Flaws in decision making by corporate leaders can do so much to set back innovation. The work of a dozen corporate Einsteins or DaVincis can be stymied by one mid-level manager making a narrow-minded decision that often makes good business sense to those with a short-term focus. Such decisions often reflect ignorance of a business’s true Value Network – the ecosystem of relationships and transactions between the parties involved with the business. The Value Network includes transactions of tangibles, like cash and goods, which most managers pay due attention to. But there is a vastly important intangible dimension to the Value Network. The transactions of intangibles include the loyalty and trust &#8211; or lack thereof &#8211; <span> </span>that develops between parties based on their behaviors and experiences. It includes word-of-mouth and other informal sharing of information, such as “I wasted all day talking to tech support and they still couldn’t answer a basic questions.”. It includes sharing tips and insights between parties. An example of the latter in a healthy ecosystem might be customer service learning about unmet user needs and passing those insights on to product development teams, who then listen and respond. But if customer service is outsourced and not well connected to the developers, the intangible links are broken and the potential benefits are lost.</p>
<p class="MsoNormal">The Pre is an innovation-rich product that Palm can be proud of. The operating system is elegant and makes it possible to easily link data from other computers and accounts (Outlook contacts, calendars, and email, for example) with the Pre’s system. The on-phone TV is amazing and surprisingly good. Integration, unification, ease of use, and elegance are found throughout the interface. Multi-tasking is a breeze. Smart interaction between applications occurs (the MP3 player pauses when a phone call occurs, for example). The GPS system, when functioning, is as fine as any I’ve used, and much better than the Hertz Neverlost system I tried a few weeks ago. Terrific phone. <span> </span>Sadly, I fear that the fruits of Palm’s innovations may wither due to short-sighted aspects of Sprint and Palm’s business model regarding technical support. It’s a classic case where poor business judgment can hinder the long-term success of outstanding innovation, contributing to innovation fatigue and the potential demise of at least one corporation.</p>
<p class="MsoNormal"><strong>Copy and Paste: Putting Your Data at Risk</strong></p>
<p class="MsoNormal">One of the most serious flaws in the Pre operating system is the feature for copying text. Sooner or later, you will want to copy some text on a web page, a PDF file, an email message, a contact card, or many other places. Yes, the Pre offers copy and paste or cut and paste, but here&#8217;s the shocker: you can only copy text that is editable. HTML text on a web page might as well be a blurry photograph of text etched in stone &#8211; you cannot copy it. A second shocker is that text in an email message sent to you is not copyable. &#8220;Easy &#8211; I&#8217;ll just forward the email, and then the text should become an editable part of my new email message, right?&#8221; Wrong. When you forward email, you can edit text in your email above the email text that is being forwarded, but that remains untouchable &#8211; and thus impervious to copying. Ouch. So when someone sends you their address or phone number in an email, you&#8217;re going to have to retype it into your contact info. The header (name and subject line) are editable, but the message contents are not.</p>
<p class="MsoNormal">Contact information in your contacts list can be copied because all of that information can be edited. But beware: there is no UNDO function on the Pre. When you enter edit mode and select text to edit it, one false key stroke and you end up overwriting the text. Boom &#8211; data loss. No undo. <strong>Data should be copyable without putting it in jeopardy of data loss.</strong> That&#8217;s a principle I wish Pre would consider.</p>
<p class="MsoNormal">The process for copy and paste is not intuitive for new Pre owners. You&#8217;re likely to get it wrong sometime &#8211; just as Pre tech support people are likely to get it wrong, as I experienced. Here&#8217;s the story. I needed to meet someone in my contacts file. I opened the contact and saw the address, and looked for some way to activate Sprint Navigation to guide me to that address. You can tap on some addresses and the Pre will launch Google Maps, which is cool, but I wanted Sprint Navigation to guide me so I woldn&#8217;t have to look at the map while driving. Doesn&#8217;t seem to be any way to move data from Google Maps to Sprint Navigation, but I thought if I could copy data from the contacts info and paste it into Spring Navigation, I&#8217;d be set. The copying process is not intuitive. After entering edit mode &#8211; OK, I&#8217;m editing the contact information for the person I need to visit &#8211; you must place the cursor somewhere by tapping on the text, then hold down the shift key (arrow up key) and then slide your finger over the text or tap your finger in the right spot to move the cursor and select the text between the original and current cursor locations. Then one needs to press C while also doing something &#8211; was it holding down the orange button? Oops &#8211; no, that wasn&#8217;t it. Suddenly, all my selected text was replaced with the letter &#8220;C&#8221;. What I should have done was to put a finger on or near the button that glows at the bottom end of the screen. When it&#8217;s glowing, it&#8217;s like holding down the command key in windows, so that simultaneously pressing C is like Cmd-C for copy, or one can then press V like Cmd-V for paste. But by doing the copy part incorrectly, the address I needed to go to for an important meeting was now just reading &#8220;C&#8221;. Not the right place to go.</p>
<p class="MsoNormal">Before I lost any more data, I called Sprint&#8217;s tech support and talked to a cheerful Spring person who said this question of how to copy and paste, undo an error, or move data to Spring Navigation was all beyond him (having never seen or  been near the phone he was supporting, apparently), so he transferred me to someone he assured me would be an utter expert with this phone. I assumed he meant someone who had seen and maybe even used the phone before. Turns out he was feeding me hype.</p>
<p class="MsoNormal">The Palm expert I was soon speaking with told me that there was no problem and no reason to worry about data loss, that everything would be fine. He told me to move my finger to the left over the glowing button to undo the data loss that had just occurred. No way- that just takes you to the previous screen. Did not restore the overwritten address I needed to visit. I think there is no undo of any kind with the Pre. This was not building my confidence with this guru. Then I asked how to avoid this problem in the future &#8211; in other words, how does one correctly copy and paste? The expert then gave me instructions: hold down the orange key, he said, and . . . &#8220;Wait,&#8221; I said, &#8220;are you sure it&#8217;s the orange key?&#8221; Yes, he was sure, and he walked me through a process that didn&#8217;t work at all, and I had to explain to him that it was the shift key, not the orange key. He looked in the manual, I think, and finally admitted that he was wrong, but assured me that there was no risk of data loss. Right. I had to explain the problem several more times and finally asked to speak to a supervisor. I was as nice as possible, gently  explaining that it was clear that he wasn&#8217;t familiar with the phone and that I really needed some guidance from someone who could help. He put me on hold and came back and said that the supervisor was unavailable. Tried again, same result, so I gave up. The lack of attention to tech support and customer service for new Pre users is going to reduce Palm&#8217;s chances of success with this product, unless I&#8217;m the only idiot in their population of users. (Perhaps that&#8217;s the case.)</p>
<p class="MsoNormal">Contrary to what Palm&#8217;s and Sprint&#8217;s tech support experts might tell you, it appears that the only way you can copy text from your contacts is to enter edit mode and select text, putting you one stroke away from unrecoverable data loss if don&#8217;t do the copy process the right way. Once you learn it and practice it, it&#8217;s straightforward &#8211; for those limited situations where you can actually edit text. But still, it ought to be copyable without that kind of risk. There needs to be an UNDO function, and copy should work anytime there is readable text, whether it&#8217;s editable or not. It&#8217;s almost like copy and paste was added as an afterthought in late beta testing rather than designed in from the beginning.</p>
<p class="MsoNormal"><strong>When You See an Invisible Dark Zone Coming, Duck!</strong></p>
<p class="MsoNormal">The most serious problems with my wife’s Pre came while we were driving through Virginia and North Carolina last week. I was using her phone’s GPS system to guide us along the highways. Suddenly an error message came up about the network connection being lost (east of Rayleigh, as I recall). The only option was to exit the GPS application and try again. When the GPS came up, the destination we were pursuing was no longer in the system. Recent destinations were no longer in the system. And while my Pre and my son’s Samsung phone were working fine, hers suddenly could no longer make calls. When attempting to call anything other than 800 numbers, a message would come on welcoming us to the American Roaming Network and telling us that we could make a collect call or credit card call by pressing 1 or 2. Then it would hand up on us.</p>
<p class="MsoNormal">This began another long journey with tech support. It would be escalated through Sprint and then I would be transferred to Palm, whose tech support seemed even less knowledgeable than Sprint’s. I think it took nearly two hours without resolution. I called Sprint again to start over after my batter ran out and had been partly recharged. This time I was lucky and found someone familiar with the problem. She explained that the Pre will sometimes lose everything when you go into a dark zone. I asked how to avoid that in the future. She said that you should turn the phone off before entering a dark zone. I asked what a dark zone looks like so I could know when I see one coming. She chuckled, and explained that it’s possible to download a coverage area map. Sweet. All I have to do is print out pages of coverage are maps and then continually monitor for dark zones coming up so I can be sure to turn my phone off ahead of time.</p>
<p class="MsoNormal">Once the soul of your phone has been sucked out by these black holes of anti-coverage, the only way to resurrect it is to go through a complex process of resetting the phone to factory settings. This involves entering a code in the dialer, then selecting a “reset” button, and then entering a master lock code and some kind of phone number related to the network, numbers which most be obtained by calling tech support. Upon resetting, the phone will begin downloading all the info you had on the phone (photos, contacts, etc.) since it is all backed up, mercifully, on the Sprint network (if you’re heavy into privacy, don’t use a cell phone).</p>
<p class="MsoNormal">I hope this is a rare problem. My phone wasn’t hurt by the coverage hole, but it wasn’t actively using an application like GPS that relied on the network at the moment of loss, so maybe that’s the difference. But now I’m a little nervous about GPS. Will keep my eyes open for those soul-sucking black holes of negative coverage. Duck!</p>
<p class="MsoNormal"><strong>The Trouble with PDF Files</strong></p>
<p class="MsoNormal">So if tech support is just searching the manual to get answers, why don’t I do that myself instead of hassling with tech support? Good question. Noting that there wasn’t a manual included with the phone, and that there wasn’t one on the phone that could be read or searched, I tried to get one on my phone. There is a Palm Pre manual at Sprint.com. Since the Palm Pre includes a PDF reader called PDFView, you might think that one simply has to go to Sprint.com and upload the PDF file. Not so easy! Turns out the PDFView application on the Palm does not allow you to view PDF files on the Web. According to Tech Support, it only works for files that are already on the phone or that are sent to you by email. If you click on a PDF link on a webpage, the Palm Pre will give you an error message about being unable to find an application to open the file. So to read the file, they told me, I would need to go to another computer, download the manual, and then email it to myself on the Palm Pre and then I could open it via PDFView by opening the attached file in email. (I would later discover, contrary to Tech Support’s instructions, than an email with a hyperlink to a PDF file ion the web would work also – the whole PDF does not need to be sent by email. But don’t even think about reading a PDF file via your browser). Or I could use a USB cable to connect the Pre to a computer and then upload the file onto the Pre, after which it would show up in a list of files I could open whenever I opened PDFView.</p>
<p class="MsoNormal">OK, I tried the email route. The user’s manual is 2.9 meg – lengthy, yes, but something that should be a piece of cake for my smart phone, right? I opened up PDFView, selected the manual, and started to look over some of its 344 pages of contents. My phone locked up completely while on page 6, trying to go to page 7. The intuitive solution for a crashed electronic device is to restart it by holding down the power button. That didn’t work, and required another call to Tech Support to unfreeze the phone with the secret true power-down move: hold the power button down while sliding the nearby ringer button back and forth at least 3 times. That causes it to power down, and just 3 minutes later the phone had successfully restarted, allowing me to try opening the PDF document again with all other apps closed to I could have maximum memory available for it. I think I only got to page 5 this time before it crashed. I tried it on my wife’s phone, and she got a different error message, but we both hit the same wall: the Palm Pre is unable to read its own user manual. No wonder it’s not included on the phone. No wonder it’s not something new users are encouraged to go download and study. No, without that manual, you’ve pretty much got one choice: call tech support, so they can thumb through the manual and then transfer you to someone else.</p>
<p class="MsoNormal">See the problem? Yes, there is a manual, but Pre owners aren’t given a copy and you can’t read it on your phone. You can if you find one on your own using another computer and then keep that computer handy when using your Pre. How ironic: one of the surest ways to crash your Palm Pre is to attempt to read its user manual. Thus, like it or not, new users are likely to feel herded toward the Tech Support corral, where the cowhands are friendly but don’t know much the care and feeding of the critters they’ve been hired to support.</p>
<p class="MsoNormal">When my phone crashed, I found that holding down the power button will not restart the phone, There’s a “secret move” one must do that involves sliding the ringer button back and forth while holding the power button. Tech support told me I needed to do that at least 3 times to restart the crashed phone. The restart seemed to kick in after six slides for me.</p>
<p class="MsoNormal"><strong>Other Observations<br />
</strong></p>
<p>The phone really needs a cancel or hang-up button of some kind, especially for those who make the mistake of talking while driving. Without a simple button to terminate a call, users may have to go through several steps that require hands and eyes on the phone. If the call is more than a few seconds, the screen will have gone black, requiring that you press the power button to bring the screen back up. Then you can find the red hang-up button on the screen or, as often happens, you may have to navigate back to the dialing application. Sometimes it has taken me four or five steps to hang up. I think it should always be possible to do that in one easy step.</p>
<p>The phone would benefit greatly from a larger on-screen text entry application. The only way to enter text now is with the painfully small and awkward keyboard that slides out from the bottom of the phone (the short side). It&#8217;s half the size of keyboards that slide out from the long side of the phone. It would help if my finger tips were about 1/3 their current size. Slow, awkward typing is a disadvantage &#8211; but I can do it. I can live with it.</p>
<p>There is no text anticipation. You have to type out the whole word everytime.</p>
<p>Unlike my old Motorola phone, there is no voice-activated command feature. There is a camera, but it doesn&#8217;t have zoom like my old phone had. The Pre doesn&#8217;t record video.</p>
<p>I also find the speaker to provide very tinny sound. Using a headset is better. The quality of the built-in speaker is somewhat disappointing.</p>
<p>But there are so many great features: the GPS, texting, the ability to browse the web using either the phone network or a local WiFi network for higher speed, integration of apps, etc. There are about 3,000 apps so far, I understand, but nothing compared to the richness of the iPhone. It&#8217;s supposed to be easier to program so more apps may follow rapidly. We&#8217;ll see.</p>
<p>Useful resource: <a href="http://support.sprint.com/index.do?&#038;m=showIndex&#038;selectedDeviceId=11160&#038;manufacturer=Palm&#038;navtypeid=6&#038;pagetypeid=27&#038;prevPageIndex=11" target="_blank">Sprint&#8217;s Tutorials for the Pre</a>.</p>
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		<title>Branding Only Works on Cattle: Observations on the Evolution of Private Brands</title>
		<link>http://www.innovationfatigue.com/2009/05/branding-only-works-on-cattle-observations-on-the-evolution-of-private-brands/</link>
		<comments>http://www.innovationfatigue.com/2009/05/branding-only-works-on-cattle-observations-on-the-evolution-of-private-brands/#comments</comments>
		<pubDate>Wed, 27 May 2009 03:14:20 +0000</pubDate>
		<dc:creator>Jeff Lindsay</dc:creator>
				<category><![CDATA[business models]]></category>
		<category><![CDATA[branding]]></category>
		<category><![CDATA[business methods]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[private label]]></category>
		<category><![CDATA[strategy]]></category>

		<guid isPermaLink="false">http://www.innovationfatigue.com/?p=119</guid>
		<description><![CDATA[One of the more enjoyable business books I’ve read recently is Jonathan Salem Baskin’s Branding Only Works on Cattle: The New Way to Get Known (and drive your competitors crazy) ( New York: Business Plus, Hachette Book Group, 2008). Drawing on his decades of experience in marketing, Baskin takes an iconoclastic approach in exposing the [...]]]></description>
			<content:encoded><![CDATA[<p>One of the more enjoyable business books I’ve read recently is Jonathan Salem Baskin’s <em>Branding Only Works on Cattle: The New Way to Get Known (and drive your competitors crazy)</em> ( New York: Business Plus, Hachette Book Group, 2008). Drawing on his decades of experience in marketing, Baskin takes an iconoclastic approach in exposing the folly of modern views on marketing and the illusion of branding.</p>
<p>Baskin challenges the mystical notions of branding in which consumers are supposed to develop deep emotional associations with products beyond the logic of utility. Commercials aimed at merely creating associations or “brand awareness” ultimately fail to drive sails. Like the troubling Burger King mascot with a crown, many of the images used to promote brands do nothing but waste our time and corporate dollars. “Most branding is a waste of money,” he insists (p. 14). “Branding is based on an outdated and invalid desire to manipulate and control consumers’ unconscious. It looks good and feels food to the people who produce it, but it has little to no effect on consumer behavior” ( p. 14).</p>
<p>He argues that rise of branding occurred during a brief era in history after the rise of network TV and other centralized media, when consumer information really was tightly controlled through a few major channels. During that brief era, a few major channels of information dominated what we learned about products and left us at the mercy of advertisers. But now, as we return to the way things almost always have been, with many fragmented sources of information based upon people’s experiences with products (think the Internet, instant messaging, and the return of other less centralized ways of interacting), what matters most – once again – is not our metaphysical relationship with a brand at some subliminal level evoked by exposure to abstract and often meaningless ads, but the performance and value of the products.</p>
<p>“Consumers don’t interact with brands. They buy stuff, and purchase real things.” p. 15</p>
<p>And now most of us already live without branding. Branding is dead. Facts, experience, word of mouth, and value are what matter. Enter the rise of private label “brands.”</p>
<p>Private brands (in store brands) have been with us for years, but it is only recently that they have really mounted a massive assault on established brands. Major manufacturers are learning that they must work harder than ever before to offer differentiable products that justify the premiums they want or need to charge. Some retailers have foreseen the power of private brands and have worked aggressively to form the partnerships and skills needed to bring private brands to a new level.</p>
<p>In the news now, we see <a href="http://www.progressivegrocer.com/progressivegrocer/content_display/supermarket-industry-news/e3i5b8b0ca04d790c4806b539174017e66b" target="_blank">Safeway offering some of its private brands to other retailers</a>, a wonderful example of innovation in business models and of magnifying the profit potential of unique skills and value chains that have been developed.</p>
<p>We see <a href="http://www.miamiherald.com/business/economy/story/953334.html" target="_blank">Wal-Mart announcing bold new plans for expanding their already extensive private brands</a>, a move which may have many old-school marketers of national brands trembling. We also see <a href="http://www.retailwire.com/Discussions/sngl_discussion.cfm/13400" target="_blank">7-Eleven announcing the role out of over 100 new in-store products</a> that will compete with national brands.</p>
<p>There planets are shifting in the retail solar system, with bodies orbiting around a new gravitational center in the cosmos of consumer products: private labels. This is not to say that national brands are dead, but the pressures and threats are evolving, and they must evolve rapidly to avoid death nipping at their hills. We will see interesting new coalitions between national brand manufacturers and private label manufacturers, and perhaps an increasing emphasis on non-commodity aspects of consumer products such as improved packaging, novel dispensing, novel functional ingredients, and new business models for co-packaging, cross-promotions, and other ways to add value and meaning to threatened national brands.</p>
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