Rei Inamoto, who’s in charge of creative at the agency AKQA, has an interesting piece on how agencies need to act more like startups. While I don’t agree with everything in there, I have always been interested by the relationship between the advertising and startup world described by Cindy Gallop:
This contradiction, and this identity crisis, however, doesn’t just exist within the ad industry. Gallop points out a core contradiction inherent in the startup space: just about everyone in the tech world hates ad people’s guts. They all believe that advertising is a very bad thing and that ad people are very bad people. Yet, their entire business model in many tech ventures is built around advertising. Take Facebook, for example. The bulk of its $3.7 billion revenue comes from advertising. Google, a company that shunned advertising for many years, built its business around advertising.
Good roundup from The Economist on why big companies are actually much better at innovation than people give them credit for: 1) Growth is driven by big ecosystems, 2) globalization makes size a bigger factor, and 3) innovation is expensive (and big companies have more money than little ones).
Jim Romenesko (guess he’s back to blogging) does a nice look back at the hype that was Segway (aka IT aka Ginger) ten years ago. He goes back and talks to some of the journalists that covered it and asks them to try and see now what they missed then.
Malcolm Gladwell’s New Yorker review of the new Steve Jobs book is excellent. In it he makes a point I haven’t seen elsewhere, essentially categorizing Jobs as an innovator, not an inventor (Gladwell calls him a tweaker, but who’s counting):
In the eulogies that followed Jobs’s death, last month, he was repeatedly referred to as a large-scale visionary and inventor. But Isaacson’s biography suggests that he was much more of a tweaker. He borrowed the characteristic features of the Macintosh—the mouse and the icons on the screen—from the engineers at Xerox PARC, after his famous visit there, in 1979. The first portable digital music players came out in 1996. Apple introduced the iPod, in 2001, because Jobs looked at the existing music players on the market and concluded that they “truly sucked.” Smart phones started coming out in the nineteen-nineties. Jobs introduced the iPhone in 2007, more than a decade later, because, Isaacson writes, “he had noticed something odd about the cell phones on the market: They all stank, just like portable music players used to.”
I know I must sound like a broken record at this point, but I feel like the distinction between invention (creation of a new thing) and innovation (commercialization of an invention) is a great way to understand how things really come to be.
Fast Company posted an interesting infographic from the folks at Help Remedies documenting the insanity that is the pharmacy, specifically the headache medication aisle. The article explains:
Each of the myriad offerings laid out, whether its gel-caps or something else, was intended to produce a slight edge on a tightly packed, insanely competitive store shelf where virtually identical products can be found just an inch away. As drug makers compete for more and more differentiation, what you get is simply overwhelming. An innovation process that started with the original intention of offering better products leads to anoverall product experience that’s horrible.
Which immediately reminded me of a quote I found when I was working on that innovation presentation. It’s from a very good Harvard Business Review article from 1980 titled “Managing Our Way to Economic Decline”:
Inventors, scientists, engineers, and academics, in the normal pursuit of scientiﬁc knowledge, gave the world in recent times the laser, xerography, instant photography, and the transistor. In contrast, worshippers of the marketing concept have bestowed upon mankind such products as new- fangled potato chips, feminine hygiene deodorant, and the pet rock….
I don’t think it’s quite this simple, but the ebb and flow of markets like this is really interesting. Help’s take is that you need less choice, not more, and they seek to simplify the conversation. But clearly at some point the conversation was simple (it had to start somewhere). I wonder where the turning point is in a category: When does the variety of products for different use-cases start to hurt overall sales? Or maybe it doesn’t, maybe all the specialized products only serve to strengthen the leading brand when confused consumers turn to what they know. (I’m sure someone with experience in this sort of CPG knows the answer to it.)