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.
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.
Five key biometric facts
Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.
How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.
Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…
- The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
- The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person. A copy or a fake cannot be used to access a cutting-edge biometric solution.
- Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
- Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers. An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past. Nobody needs to remember their password with biometrics, they only need to show up.
- Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.