ROGER NORTON, CEO at Startup Studio Playlogix.com, looks at what lessons corporates can learn from startups about innovation and what they can do differently to compete better.
Innovation is the new competitive advantage, and large companies are realising that it’s hard to do when culture, processes and mindset don’t support this new way of thinking. Startups, however, are increasingly proving to be great vehicles for creating innovative products as they continue to disrupt markets and outcompete the more entrenched larger and slower companies (until they get acquired at least…).
Acquiring external innovations and merging them into a larger company is an approach that often fails. This is because the dynamics that drive a corporate for things like risk reduction and cost optimisation are totally at odds with the dynamics that have allowed the startup to thrive in the first place. Applying key practices to create the right environment could significantly increase the odds of success.
Firstly, startups are small autonomous teams that work under conditions of extreme uncertainty, searching for a repeatable, scalable business model by being laser-focused on the value that they provide to their customers. There are also many dynamics at play in a startup and an important number of constraints. For example, time and money, and the type of funding startups raise needs constant validation and proof that they’re on a winning track to encourage them to keep experimenting until they are sure (in theory, but in practice, it’s a lot messier…)
To recreate these startup constraints, while removing the big corporate ones, is no simple feat. Here are some tips on what helps that we’ve picked up along the way so far:
1. Run many small projects simultaneously, not a few large ones.
You’re not going to get the best ideas in the beginning (no matter how good you think it is now). Running lots of small experiments allows you to ‘learn how to learn’ faster and increases your odds of finding amazing opportunities. It’s a numbers game – ask any venture capitalist. This approach also allows you to focus your energy and capital on what really matters and leave off the ‘nice to have’ features.
2. Create a safe-to-fail environment.
Running lots of small experiments is a great way to achieve a safe-to-fail environment, but an extra effort should be made to celebrate the failures as these indicate the things that you’ve learnt. It’s also important not to overhype small experiments and create high external expectations. Every project you invalidate early saves you the money you would have previously spent trying to launch it. Fail fast and early.
3. Create cross-functional teams.
Use multi-disciplinary teams from many different areas of expertise and various levels of management. Diverse teams not only bring very unique perspectives to each problem, but they also allow the space for the idea to morph into a bigger opportunity in an adjacent area. Hierarchy bridging teams help allow decisions to be made fast and implemented faster. You need to keep the feedback loops tight.
4. Have a single driver for each project.
If you’re trying to build a startup, you need an ‘entrepreneur’. One person that is involved in every aspect, has all the context and can make decisions really quickly. The buck needs to stop somewhere, and at least one person needs to be 100% focused on making it work. This person also needs to document the project and decisions along the way, something that is critical when needing to report to the traditional business.
5. Have a clear validation path for each project with clear milestones that needs to be followed.
Mapping out clear objectives, what is expected at each stage, what support is available, and what the team should be focusing on at any given time helps create the laser focus on what’s most important. The objectives should also set out time and budget limitations throughout the process (we’ve put together the Lean Iterator process under a Creative Commons license to help with that).
6. Focus on solving a customer’s problem, not on a particular solution.
By trying to build a particular product, it’s not complete until it is, and that means that you can’t learn anything until the end. By focussing on a customer’s problem, you will easily find ways to make improvements early on, and you will learn your way to the best solution. It also means you’re more likely to build something people actually want (this point is covered in detail here).
7. Identify the business unit that will be the custodian if it works and engage them early on.
If it works, then the project is going to need to move onto a department’s balance sheet. Keeping them in the loop of the project from early on will help you build something that makes that process much easier. Find out what their KPIs are and how you might effect them. Understand the corporate governance restrictions that you’re going to have to navigate. This aspect is one of the biggest failures of the “successful” projects that I’ve seen.
8. Define success before you run experiments and review regularly.
Every experiment needs a hypothesis. You need to know what you’re testing for before you start. Clear success criteria help you work out what is most important and is the easiest way to prevent getting distracted on things that don’t matter. It helps you hear the signal in the noise. Research competitors as early as possible to make sure you’re differentiated and keep testing for feasible revenue streams early.
9. Allow anyone in the company the opportunity to try something.
Innovation is not limited to an ‘innovation team’ or a particular level of employee. To build an innovative culture and environment, you need to allow anyone in the organisation to try something, give them the time away from their normal responsibilities they need and not punish them when they go back to their role.
10. Have clear incentives for winners.
Startups are hard. The risk, pressure and energy required to make them work need to be worth the reward. The type of reward will depend greatly on the project, but there should be a rewards framework defined up front. This compensation could be in bonuses, recognition, profit share or something similar.
The bottom line is that in a corporate environment that optimises for cost reduction, failure is seen as a waste. But failure is inevitable when you are trying something that hasn’t been done before. It is better to optimise for ‘maximum learning’- which is how you optimise to come up with new innovations fastest. And we believe that creating startups is just a more reliable way to do this.
Samsung S10 in lock-step with its rivals?
Tonight Samsung will kick off the next round in the smartphone wars with the S10 range, writes ARTHUR GOLDSTUCK.
When Samsung unveils the new S10 smartphone at an event in San Francisco today, it will mark the beginning of the 2019 round of World War S. That stands for smartphone wars, although Samsung would like it to be all about the S.
Ever since the launch of the Samsung Galaxy S4 in 2013, Samsung has held both technology and thought leadership in the handset world. Back then, Apple’s iPhone 5 was the last device from the American manufacturer that could lay claim to being the best smartphone in the world. With the 2013 launch of the iPhone 5s, Apple entered an era of incremental improvement, playing catch-up, and succumbing to market trends driven by its competitors.
Six years later, Samsung is fighting off the same threat. Its Chinese rival, Huawei, suddenly wrested away leadership in the past year, with the P20 Pro and Mate 20 Pro regarded as at last equal to the Samsung Galaxy S9 Plus and Galaxy Note 9 – if not superior. Certainly, from a cost perspective, Huawei took the lead with its more competitive prices, and therefore more value for money.
Huawei also succeeded where Apple failed: introducing more economical versions of its flagship phones. The iPhone 5c, SE and XR have all been disappointments in the sales department, mainly because the price difference was not massive enough to attract lower-income users. In contrast, the Lite editions of the Huawei P9, P10 and P20 have been huge successes, especially in South Africa.
Today, for the first time in half a decade, Samsung goes into battle on a field laid out by its competitors. It is expected to launch the Galaxy S10 Plus, S10 and S10 e, with the latter being the Samsung answer to the strategy of the iPhone XR and Huawei P20 Lite.
Does this mean Samsung is now in lock-step with its rivals, focused on matching their strategies rather than running ahead of them?
It may seem that way, but Samsung has a few tricks up its electronic sleeve. For example, it is possible it will use the S10 launch to announce its coming range of foldable phones, expected to be called the Galaxy X, Galaxy F, Galaxy Fold or Galaxy Flex. It previewed the technology at a developer conference in San Francisco last November, and this will be the ideal moment to reclaim technology leadership by going into production with foldables – even if the S10 range itself does not shoot out the lights.
However, the S10 handsets will look very different to their predecessors. First, before switching on the phone, they will be notable by the introduction of what is being called the punch-hole display, which breaks away from the current trend of having a notch at the top of the phone to house front-facing cameras and speakers. Instead, the punch-hole is a single round cut-out that will contain the front camera. It is the key element of Samsung’s “Infinity O” display – the O represents the punchhole – which will be the first truly edge-to-edge display, on the sides and top.
The S10 range will use the new Samsung user interface, One UI, also unveiled at the developer conference. It replaces the previous “skin”, unimaginatively called the Samsung Experience, to introduce a strong new interface brand.
One UI went live on the Note 8 last month, giving us a foretaste, and giving Samsung a chance to iron out the bugs in the field. It is a less cluttered interface, addressing one of the biggest complaints about most manufacturer skins. Only Nokia and Google Pixel handsets offer pure Android in the local market, but One UI is Samsung’s best compromise yet.
It introduces a new interaction area, in the bottom half, reachable with the thumb, with a viewing area at the top, allowing the user to work one-handed on the bottom area while still having apps or related content visible above. One UI also improves gesture navigation – the phone picks up hand movements without being touched – and notification management.
The S10 range will be the first phones to feature the latest Qualcomm Snapdragon 855 chip, at least for the South African and American markets. That makes it 5G compatible, for when this next generation of mobile broadband becomes available in these markets.
They will also be the first phones to feature Wi-Fi 6, the next generation of the Wi-Fi mobile wireless standard. It will perform better in congested areas, and data transfer will be up to 40% faster than the previous generation.
The phones will be the first to use ultrasound for fingerprint detection. If Samsung gets it right, this will make it the fastest in-screen fingerprint sensor on the market, and allows for a little leeway if one pushes the finger down slightly outside the fingerprint reader surface. It does mean, however, that screen protectors will have to be redesigned to avoid blocking the detection.
Not enough firsts? There are a few more.
Most notably, it will be the first phone range to feature 1 Terabyte (TB) storage – that’s a thousand Gigabytes (GB) – at least for the top-of-the-range devices. Samsung last month announced that it would be the first manufacturer to make 1TB built-in onboard flash storage. Today, it will deploy this massive advantage as it once again weaponises its technology in the fight for smartphone domination.
- Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee
IoT set to improve authentication
By Sherry Zameer, Senior Vice President, Internet of Things Solutions for CISMEA region at Gemalto
As it rapidly approaches maturity, the Internet of Things (IoT) is set to continue a transformational trajectory, introducing new efficiencies in multiple fields by allowing measurement and analysis on a scale that has never been possible before. From agriculture to logistics, from retail to hospitality, from traffic to health, from the home to the office, the applications for monitoring ”things” are limited only by the imagination.
And South African (and African) businesses are showing abundant imagination in their practical deployments of IoT solutions in multiple settings, creating a better tomorrow through almost universal measurement and the introduction of new levels of convenience – including how to access locations, devices and services securely.
Any company, whether South African or international, should bear in mind that understanding consumer expectations can be the key to unlocking the full potential of IoT devices and related smart services.
According to Gemalto’s latest Connected Living study, improving the way consumers authenticate themselves to services is one of the most anticipated benefits of IoT, highlighting a desire for a more seamless and secure IoT experience.
Consumers are interested in advanced ways of authenticating themselves through automatic (based on behavioral patterns) or biometric techniques, lessening the need to have to intervene manually, all in the name of a much more streamlined authentication process. Smartphone manufacturers like Apple and Samsung have already placed fingerprint and facial recognition high on the agenda. There is also a widespread positive sentiment towards IoT’s potential for improving the quality of home life through connected, smart appliances.
Personalised services is something else that wins consumers over. In fact, a fluid, personalised and unified experience with continuity of services, together with security and privacy, is critical for the successful implementation of any technology.
And those types of services are today quite possible. With everything being connected – from small gadgets to digital solutions for large enterprises – IoT is no longer just a buzzword. That much is clear in a piece from Vodacom IoT managing executive Deon Liebenberg. Writing for IOL Online, Liebenberg provides insight into the sheer range of applications for IoT: the 20 use cases he cites range from the obvious, like transport and logistics, to the connected home and wearables; he even suggests tagging pets with IoT transmitters, for those who always need to know the whereabouts of the family cat.
Low-cost tags fitted to cats, dogs, lamp posts, shipping containers or other items are just one part of the puzzle, however. There are other two pieces; arguably the most complex part is the availability of communication networks in areas where there aren’t any WiFi networks, or indeed, anything else.
And that’s where the bigger takeaway from Liebenberg’s piece and other IoT trends articles becomes apparent. The communication networks are there, as are those tags: dedicated IoT networks (like LoraWAN, SigFox and narrowband IoT) are all available in South Africa.
So, too, is the third and final essential component. Software which is able to process the data generated by the tag and transmitted over the IoT network and into the internet. In this regard, there’s no shortage of solutions available from cloud providers like AWS and Azure; electronics giant Siemens, too, is in on the action, having recently launched a new cloud-based IoT operating system to develop applications and services for process industries, including oil and gas and water management.
This combination means it is quite possible right now to enable just about any use case. Business owners, who will know best how IoT can add value in their organisation, can now see their ideas becoming reality. Most crucial of all, IoT solutions delivering new levels of efficiency and convenience are not only possible, they are able to be offered with the simple and effective security that will drive consumer acceptance.