Product Innovation Quotes

You are what you share.

As you consider building your own minimum viable product, let this simple rule suffice: remove any feature, process, or effort that does not contribute directly to the learning you seek.

Digital minimalism definitively does not reject the innovations of the internet age, but instead rejects the way so many people currently engage with these tools.

America is the greatest engine of innovation that has ever existed, and it can't be duplicated anytime soon, because it is the product of a multitude of factors: extreme freedom of thought, an emphasis on independent thinking, a steady immigration of new minds, a risk-taking culture with no stigma attached to trying and failing, a noncorrupt bureaucracy, and financial markets and a venture capital system that are unrivaled at taking new ideas and turning them into global products.

A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.

Freedom in any moment is a product of two things: the autonomy you feel and the support for autonomy that the moment allows.

You need a product that can make their lives easier; a product that they need and can relate to as well.

The moment you will stop innovating, somebody else will make your product outdated and will become the market leader.

The secret to doing good research is always to be a little underemployed. You waste years by not being able to waste hours

The best and most innovative products don't always win...(it's an) aesthetic flaw in how the universe worked

Innovation requires having at least three things: a great idea, the engineering talent to execute it, and the business savvy (plus deal-making moxie) to turn it into a successful product.

The insidious nature of socialism, cloaked in a façade of compassion, makes it very dangerous to an uneducated and trusting populace. And as socialism creates dependency, it is well on its way to eliminating freedom of choice and incentives for high productivity and innovation.

I have my own theory about why decline happens at companies like IBM or Microsoft. The company does a great job, innovates and becomes a monopoly or close to it in some field, and then the quality of the product becomes less important. The company starts valuing the great salesmen, because they’re the ones who can move the needle on revenues, not the product engineers and designers. So the salespeople end up running the company.

I am really very grateful for this Award. It is one of the first given to a woman, and to two women at that. When I first started getting work published, I used to have wistful thoughts at the way all important awards were given to men. Women, I used to think, could be as innovative, imaginative and productive as possible - and women were the ones mostly at work in the field of fantasy for children and young adults - but only let a man enter the field, and people instantly regarded what he had to say and what he did as more Important. He got respectful reviews as well as awards, even if what he was doing - which it often was - was imitating the women. But you have changed all that. Thank you for being so enlightened. Women, large-minded, formidable women, have played an almost exclusive part in helping my career. I have hardly ever dealt with a man - at least, when it came to publishing:

Corporate governance, in this century, must include exploring how ESG factors can drive innovation and product development.

How can we walk away from requirements that we know to be true to pursue something that we think will help?” It turns out that is exactly what product strategy is all about—figuring out the right product is the innovator’s job, not the customer’s job.

As the pace of change accelerates, industry life cycles, company life cycles, and product life cycles are compressed.

Engaged employees are more productive, innovative, and committed to the company's success. They become passionate advocates for your brand and contribute to a positive work environment that attracts and retains top talent.

Steve and I spent a lot of time on the packaging," said Ive. " I love the process of unpacking something. You design a ritual of unpacking to make the product feel special. Packaging can be theater, it can create a story.

Many of the innovative companies got their best product ideas from customers. That comes from listening, intently and regularly.

Many innovations fail because consumers irrationally overvalue the old while companies irrationally overvalue the new.

Good design is innovative. Good design must be useful. Good design is aesthetic design. Good design makes a product understandable. Good design is honest. Good design is unobtrusive. Good design is long-lasting. Good design is consistent in every detail. Good design is environmentally friendly. And last but not least, good design is as little design as possible.

The point is that when we focus on all three things at once—technology, policies, and markets—we can encourage innovation, spark new companies, and get new products into the market fast.

Entrepreneurs, by definition, shift resources from areas of low productivity and yield to areas of higher productivity and yield. Of course, there is a risk they may not succeed. But if they are even moderately successful, the returns should be more than adequate to offset whatever risk there might be.

The point is not to find the average customer but to find early adopters: the customers who feel the need for the product most acutely. Those customers tend to be more forgiving of mistakes and are especially eager to give feedback.

In every company which I have done strategic planning, the number-one value people choose is always integrity. The second values may be quality of products and services, caring about people, excellent customer service, profitability , innovation, entrepreneurship, and others. But integrity always comes first.

New products succeed not because of the features and functionality they offer but because of the experiences they enable. If

Entrepreneurs, by definition, shift resources from areas of low productivity and yield to areas of higher productivity and yield. Of

A sense of control can fuel motivation, but for that drive to produce insights and innovations, people need to know their suggestions won’t be ignored, that their mistakes won’t be held against them. And they need to know that everyone else has their back.

Steve Jobs thus became the greatest business executive of our era, the one most certain to be remembered a century from now. History will place him in the pantheon right next to Edison and Ford. More than anyone else of this time, he made products that were completely innovative, combining the power of poetry and processors. With a ferocity that could make working with him as unsettling as it was inspiring, he also built the world's most creative company. And he was able to infuse into its DNA the design sensibilities, perfectionism, and imagination that make it likely to be, even decades from now, the company that thrives best at the intersection of artistry and technology.

Multipliers invoke each person’s unique intelligence and create an atmosphere of genius—innovation, productive effort, and collective intelligence.

If consumers weren’t so focused on quantity over quality and trends over innovative design, the price of domestic production might not seem so exorbitant.

First, disruptive products are simpler and cheaper; they generally promise lower margins, not greater profits. Second, disruptive technologies typically are first commercialized in emerging or insignificant markets. And third, leading firms’ most profitable customers generally don’t want, and indeed initially can’t use, products based on disruptive technologies.

Financial health is the lifeblood of any organization. It's the engine that drives growth, innovation, and long-term sustainability. A company's financial performance determines its ability to invest in new products or services, attract and retain top talent, weather economic downturns, and ultimately, fulfill its mission.

The reason is that good management itself was the root cause. Managers played the game the way it was supposed to be played. The very decision-making and resource-allocation processes that are key to the success of established companies are the very processes that reject disruptive technologies: listening carefully to customers; tracking competitors’ actions carefully; and investing resources to design and build higher-performance, higher-quality products that will yield greater profit. These are the reasons why great firms stumbled or failed when confronted with disruptive technological change.

All businesses -- no matter if they make dog food or software -- don't sell products, they sell solutions.

(Productive Workers + Innovative Products = Industry Leadership, no?)

Innovation basically involves making obsolete that which you did before.

When commercializing disruptive technologies, they found or developed new markets that valued the attributes of the disruptive products, rather than search for a technological breakthrough so that the disruptive product could compete as a sustaining technology in mainstream markets.

In fact, it has become increasingly profitable not to innovate. Imagine just how much progress we’ve missed out on because thousands of bright minds have frittered away their time dreaming up hyper complex financial products that are ultimately only destructive.

**New business concepts are always, always the product of lucky foresight.** That's right - the essential insight doesn't come out of any dirigiste planning process; it comes form some cocktail of happenstance, desire, curiosity, ambition and need. But at the end of the day, there has to be a degree of foresight -- a sense of where new riches lie. So radical innovation is always one part fortuity and one part clearheaded vision. [first-line bold by author] [2002] p.23

When he heard laughter, before he could think or feel anything, his heart would already be beating like he’d sprinted twenty yards. As the beating slowly normalized he’d think of how his heart, unlike him, was safely contained, away from the world, behind bone and inside skin, held by muscles and arteries in its place, carefully off-center, as if to artfully assert itself as source and creator, having grown the chest to hide in and to muffle and absorb—and, later, after innovating the brain and face and limbs, to convert into productive behavior—its uncontrollable, indefensible, unexplainable, embarrassing squeezing of itself.

Most [organizations] think the key to growth is developing new technologies and products. But often this is not so. To unlock the next wave of growth, companies must embed these innovations in a disruptive new business model.

Under-slept employees are not, therefore, going to drive your business forward with productive innovation. Like a group of people riding stationary exercise bikes, everyone looks like they are pedaling, but the scenery never changes. The irony that employees miss is that when you are not getting enough sleep, you work less productively and thus need to work longer to accomplish a goal. This means you often must work longer and later into the evening, arrive home later, go to bed later, and need to wake up earlier, creating a negative feedback loop. Why try to boil a pot of water on medium heat when you could do so in half the time on high? People often tell me that they do not have enough time to sleep because they have so much work to do. Without wanting to be combative in any way whatsoever, I respond by informing them that perhaps the reason they still have so much to do at the end of the day is precisely because they do not get enough sleep at night.

The daughter of Lithuanian immigrants, born with a precocious scientific intellect and a thirst for chemical knowledge, Elion had completed a master's degree in chemistry from New York University in 1941 while teaching high school science during the day and preforming her research for her thesis at night and on the weekends. Although highly qualified, talented, and driven, she had been unable to find a job in an academic laboratory. Frustrated by repeated rejections, she had found a position as a supermarket product supervisor. When Hitchings found Trudy Elion, who would soon become on of the most innovative synthetic chemists of her generation (and a future Nobel laureate), she was working for a food lab in New York, testing the acidity of pickles and the color of egg yolk going into mayonnaise. Rescued from a life of pickles and mayonnaise…

When you first start off trying to solve a problem, the first solutions you come up with are very complex, and most people stop there. But if you keep going, and live with the problem and peel more layers of the onion off, you can oftentimes arrive at some very elegant and simple solutions. Most people just don't put in the time or energy to get there.

It turns out that is exactly what product strategy is all about—figuring out the right product is the innovator’s job, not the customer’s job.

Unlike other product developers, Jobs did not believe the customer was always right; if they wanted to resist using a mouse, they were wrong.

Innovation is a by-product of empathy.

A rule for success in today's wild new economic world is this: use the most innovative technologies to deliver the most primal products and services.

Don’t follow your passions; follow your effort. It will lead you to your passions and to success.

Watching how customers actually use a product provides much more reliable information than can be gleaned from a verbal interview or a focus group.

Innovation,” he wrote, “is rarely about a big idea; more usually it’s about a series of small ideas brought together in a new and better way.

The little secret in product is that engineers are typically the best single source of innovation; yet, they are not even invited to the party in this process.

We get smarter and more creative as we age, research shows. Our brain's anatomy, neural networks, and cognitive abilities can actually improve with age and increased life experiences. Contrary to the mythology of Silicon Valley, older employees may be even more productive, innovative, and collaborative than younger ones... Most people, in fact, have multiple cognitive peaks throughout their lives.

The long-term value of an enterprise is not captured by the value of its products and intellectual property but rather by its ability to continuously increase the value it provides to customers — and to create new customers — through innovation.

True, hundreds of millions may nevertheless go on believing in Islam, Christianity or Hinduism. But numbers alone don’t count for much in history. History is often shaped by small groups of forward-looking innovators rather than by the backward-looking masses. Ten thousand years ago most people were hunter-gatherers and only a few pioneers in the Middle East were farmers. Yet the future belonged to the farmers. In 1850 more than 90 per cent of humans were peasants, and in the small villages along the Ganges, the Nile and the Yangtze nobody knew anything about steam engines, railroads or telegraph lines. Yet the fate of those peasants had already been sealed in Manchester and Birmingham by the handful of engineers, politicians and financiers who spearheaded the Industrial Revolution. Steam engines, railroads and telegraphs transformed the production of food, textiles, vehicles and weapons, giving industrial powers a decisive edge over traditional agricultural societies.

The husband and wife who open another delicatessen store or another Mexican restaurant in the American suburb surely take a risk. But are they entrepreneurs? All they do is what has been done many times before. They gamble on the increasing popularity of eating out in their area, but create neither a new satisfaction nor new consumer demand. Seen under this perspective they are surely not entrepreneurs even though theirs is a new venture. McDonald’s, however, was entrepreneurship. It did not invent anything, to be sure. Its final product was what any decent American restaurant had produced years ago. But by applying management concepts and management techniques (asking, What is “value” to the customer?), standardizing the “product,” designing process and tools, and by basing training on the analysis of the work to be done and then setting the standards it required, McDonald’s both drastically upgraded the yield from resources, and created a new market and a new customer. This is entrepreneurship.

As all these trends happen, the winners will be those who are able to participate fully in innovation-driven ecosystems by providing new ideas, business models, products and services, rather than those who can offer only low-skilled labour or ordinary capital.

According to the pioneering work of Nobel Prize winner Robert Solow, technological innovation is the ultimate source of productivity and growth.22 It’s the only proven way for economies to consistently get ahead—especially innovation born by start-up companies.

The Profit function: Individual profits cause collective growth and prosperity. It is necessary for individual people and businesses to profit in a Permaculture Economy where justice is maintained and fairly applied. Profits are earned when efficiency is mastered. With profits, individuals invest in (a) new and innovative means of production which will allow more profits, or (b) buying products and services from other individuals who are also seeking profit by providing value. Profits also incentivize individuals to be productive participants in society to begin with. If there will be no profit in an activity, business or industry, then individuals will decline participation in that activity, business or industry. Since profits are only possible when buyers are satisfied with the productivity of sellers, then it is also true that an individuals willingness to participate in an activity, business or industry is preceded by the buyers satisfaction which allows the seller to profit. But when buyers are dissatisfied and decline participation, it forces sellers to decline participation. Inversely, if profits are eradicated through the force of price-controls by the government, then sellers will decline participation which then causes buyers to decline participation. And when both sellers and buyers decline participation, then whole industries and economies collapse.

Good Design is:   1.  innovative   2.  what makes a product useful   3.  aesthetic   4.  what makes a product understandable   5.  unobtrusive   6.  honest   7.  long-lasting   8.  thorough down to the last detail   9.  environmentally friendly 10.  as little design as possible

Oh, noble child, everything is severing the mind. As for the mind, it is severing pride. There is nothing whatsoever that is not included in pride. If one simply understands that it is merely the production of pride, then, for example, one is like a thief in an empty house: by simply recognizing [the situation], grasping is impossible. Having correctly understood, there is no practice with an intentional objective. Because it crushes any hesitations (mi phod), it is explained as Chöd.

Individual profits cause collective growth and prosperity. It is necessary for individual people, businesses, and companies to profit, in a Permaculture Economy where justice is maintained and fairly applied. Profits are earned when efficiency is mastered. With profits, individuals invest in (a) new and innovative means of production which will allow more profits, or (b) they use profits to buy products or services from other individuals who are also seeking profit by providing value. Profits also incentivize individuals to be productive to begin with. If there will be no profit in an activity, business or industry, then individuals will decline participation. Since profits are only possible when buyers are satisfied with the productivity of sellers, then it is also true that an individual's willingness to participate in an activity, business or industry is preceded by the buyers satisfaction which allows them to profit. So, when buyers decline participation it forces sellers to decline participation. Inversely, if profits are removed through force of price controls by the government, then sellers will decline participation which then causes buyers to decline participation.

. The whole idea of heaven and hell is a perfect illustration of just how the core of Christian doctrine is antithetical to reason, rationality and even life. It elevates ignorance and non-productivity and suppresses creative and innovative thought. One competent scientist is worth more than a thousand evangelists.

Disruptive innovations, in contrast, don’t attempt to bring better products to established customers in existing markets. Rather, they disrupt and redefine that trajectory by introducing products and services that are not as good as currently available products. But disruptive technologies offer other benefits—typically, they are simpler, more convenient, and less expensive products that appeal to new or less-demanding customers.3

without variability, we cannot innovate. Product development produces the recipes for products, not the products themselves. If a design does not change, there can be no value-added. But, when we change a design, we introduce uncertainty and variability in outcomes. We cannot eliminate all variability without eliminating all value-added.

I am what I am.' Never has domination found such an innocent-sounding slogan. The maintenance of the self in a permanent state of deterioration, in a chronic state of near-collapse, is the best-kept secret of the present order of things. The weak, depressed, self-critical, virtual self is essentially that endlessly adaptable subject required by the ceaseless innovation of production, the accelerated obsolescence of technologies, the constant overturning of social norms, and generalized flexibility. It is at the same time the most voracious consumer and, paradoxically, the *most productive self*, the one that will most eagerly and energetically throw itself into the slightest *project*, only to return later to its original larval state.

Six Telltale Signs of a Winning Strategy 1) An activity system that looks different from any competitor's system. It means you are tempting to deliver value in a distinctive way. 2) Customers who absolutely adore you, and noncustomers who can't see why anybody would buy from you. This means you have been choiceful. 3) Competitors who make a good profit doing what they are doing. It means your strategy has left where-to-play and how-to-win choices for competitors, who don't need to attack the heart of your market to survive. 4) More resources to spend on an ongoing basis than competitors have. This means you are winning the value equation and have the biggest margin between price and costs and best capacity to add spending to take advantage of an opportunity to defend your turf. 5) Competitors who attack one another, not you. It means that you look like the hardest target in the (broadly defined) industry to attack. 6) Customers who look first to you for innovations, new products, and service enhancement to make their lives better. This means that your customers believe that you are uniquely positioned to create value for them.

The culture of a given time and place is a product of inherited tradition, of the recovery of lost or obscured forms of thought, of innovation. Such seeds, fertilized by prosperity, tended by leisure, and warmed by the sun of peace, may produce an abundant bloom.

There are whole industries, such as venture capital, that are currently organized around the belief that innovation is essentially a game of playing the odds. But it’s time to topple that tired paradigm. I’ve spent twenty years gathering evidence so that you can put your time, energy, and resources into creating products and services that you can predict, in advance, customers will be eager to hire. Leave relying on luck to the other guys.

We long for experiences “of profound connection with others,” he writes, “of deep understanding of natural phenomena, of love, of being profoundly moved by music or tragedy, or doing something new and innovative.” Just as important, we long for esteem and pride, “a self that happiness is a fitting response to.” Implicit in Nozick’s experiment is the idea that happiness should be a by-product, not a goal. Many of the ancient Greeks believed the same. To Aristotle, eudaimonia (roughly translated as “flourishing”) meant doing something productive. Happiness could only be achieved through exploiting our strengths and our potential. To be happy, one must do, not just feel.

One of the least meaningful and most overused words in the English language is 'sustainability.' For most Americans, it means something like 'pretty much the way I live right now, though maybe with a different car.' A good test of any activity or product described as sustainable is to multiply it by 300 million (the approximate current population of the United States) and then by 9 or 10 billion (the expected population of the world by midcentury) and see if it still seems green. This is not an easy test to pass

This is also, I hope, a book about innovation. At a time when the United States is seeking ways to sustain its innovative edge, and when societies around the world are trying to build creative digital-age economies, Jobs stands as the ultimate icon of inventiveness, imagination, and sustained innovation. He knew that the best way to create value in the twenty-first century was to connect creativity with technology, so he built a company where leaps of the imagination were combined with remarkable feats of engineering. He and his colleagues at Apple were able to think differently: They developed not merely modest product advances based on focus groups, but whole new devices and services that consumers did not yet know they needed.

it was Greenspan who through some excessive deregulation prepared the monetary ground for the rise of the subprime mortgage companies: a lending market that specialises in high-risk mortgages and loans. 'Innovation', said Greenspan in April 2005, 'has brought about a multitude of new products, such as subprime loans and niche credit programs for immigrants'. It is almost touching to find out that Greenspan cares so much about immigrants.

The German economic historian Fanz Oertel in the 1950s points to another drastic consequence of a slave economy. A slave economy initially allowed an increase of productivity through the invention and use of new machinery. Roman products remained at a simple level and could be reproduced by handicraft. By the fourth century, for example, the robust pottery industry of Greece was in sharp decline because other parts of the empire also learned to make pottery. "The decline in international trade in the Mediterranean in the fourth century was partly due to increasing piracy, but it was also due to lack of industrial innovation and of need for exchange of manufactured goods.

The problem with most smart people is that they are too dumb to distinguish necessity from luxury, that's why despite having the resources to deal with real problems that cause misery to humanity, they keep wasting those resources on pompous dreams. And you can have first-hand experience with such stupidity if you visit any CES event. Whether it is smart toilet or smart underwear, there is no end to intellectual, wealthy and pompous stupidity. Silicon Valley is no longer the valley of innovators who solve problems, it has turned into the valley of resourceful stupidity. They are a bunch of people wasting resources on creating products that do nothing more than fuel the predominant neurosis of consumerism.

Although the view that, once discovered, ideas can be imitated for free by anybody is pervasive, it is far from the truth. While it may occasionally be the case that an idea is acquired at no cost—ideas are generally difficult to communicate, and the resources for doing so are limited. It is rather ironic that a group of economists, who are also college professors and earn a substantial living teaching old ideas because their transmission is neither simple nor cheap, would argue otherwise in their scientific work. Most of the times imitation requires effort and, what is more important, imitation requires purchasing either some products or some teaching services from the original innovator, meaning that most spillovers are priced.

Most of the successful innovators and entrepreneurs in this book had one thing in common: they were product people. They cared about, and deeply understood, the engineering and design. They were not primarily marketers or salesmen or financial types; when such folks took over companies, it was often to the detriment of sustained innovation. “When the sales guys run the company, the product guys don’t matter so much, and a lot of them just turn off,” Jobs said. Larry Page felt the same: “The best leaders are those with the deepest understanding of the engineering and product design.”34 Another lesson of the digital age is as old as Aristotle: “Man is a social animal.” What else could explain CB and ham radios or their successors, such as WhatsApp and Twitter? Almost every digital tool, whether designed for it or not, was commandeered by humans for a social purpose: to create communities, facilitate communication, collaborate on projects, and enable social networking. Even the personal computer, which was originally embraced as a tool for individual creativity, inevitably led to the rise of modems, online services, and eventually Facebook, Flickr, and Foursquare. Machines, by contrast, are not social animals. They don’t join Facebook of their own volition nor seek companionship for its own sake. When Alan Turing asserted that machines would someday behave like humans, his critics countered that they would never be able to show affection or crave intimacy. To indulge Turing, perhaps we could program a machine to feign affection and pretend to seek intimacy, just as humans sometimes do. But Turing, more than almost anyone, would probably know the difference. According to the second part of Aristotle’s quote, the nonsocial nature of computers suggests that they are “either a beast or a god.” Actually, they are neither. Despite all of the proclamations of artificial intelligence engineers and Internet sociologists, digital tools have no personalities, intentions, or desires. They are what we make of them.

This background enables us to understand a fact that is symptomatic of the current phase of saturation: there are countless people who want to withdraw from the omnipresence of advertising, who even avoid it like the plague. Here too, it is helpful to distinguish between the states before and after. From the perspective of the burgeoning world of products, advertising could be justified by the argument that spreading the word about the existence of new means of life improvements was indispensable, as the populations of industrial and trading nations would otherwise have been cheated of major knowledge about discreet improvements to the world. As the ambassador of new bringers of advantage, early advertising was the general training medium for contemporary performance collectives thoughtlessly denounced in culture-conservative milieus as 'consumer societies'. The aversion to advertising that pervades the saturated infospheres of the present, however, is based on the correct intuition that, in most of its manifestations, it has long since become a form of downward training. It no longer passes on what people should know in order to access advantageous innovations; it creates illusions of purchasable self-elevations that de facto usually lead to weakenings.

Might one not say that in the chance combination of nature's production, since only those endowed with certain relations of suitability could survive, it is no cause for wonder that this suitability is found in all species that exist today? Chance, one might say, produced an innumerable multitude of individuals; a small number turned out to be constructed in such fashion that the parts of the animal could satisfy its needs; in another, infinitely greater number, there was neither suitability nor order: all of the later have perished; animals without a mouth could not live, others lacking organs for reproduction could not perpetuate themselves: the only ones to have remained are those in which were found order and suitability; and these species, which we see today, are only the smallest part of what blind fate produced.

Industrial innovations are costly, and managers must justify their high cost by producing measurable proof of their superiority... [P]eriodic innovations in goods or tools foster the belief that anything new will be proven better. This belief has become an integral part of the modern world view. It is forgotten that whenever a society lives by this delusion, each marketed unit generates more wants than it satisfies. If new things are made because they are better, then the things most people use are not quite good. New models constantly renovate poverty. The consumer feels the lag between what he has and what he ought to get. He believes that products can be made measurably more valuable and allows himself to be constantly re-educated for their consumption. The "better" replaces the "good" as the fundamental normative concept.

Throw in the valley’s rich history of computer science breakthroughs, and you’ve set the stage for the geeky-hippie hybrid ideology that has long defined Silicon Valley. Central to that ideology is a wide-eyed techno-optimism, a belief that every person and company can truly change the world through innovative thinking. Copying ideas or product features is frowned upon as a betrayal of the zeitgeist and an act that is beneath the moral code of a true entrepreneur. It’s all about “pure” innovation, creating a totally original product that generates what Steve Jobs called a “dent in the universe.” Startups that grow up in this kind of environment tend to be mission-driven. They start with a novel idea or idealistic goal, and they build a company around that. Company mission statements are clean and lofty, detached from earthly concerns or financial motivations.

We should note that almost every technological transformation of consequence has taken place under Western auspices—if not Western in the strict geographical sense, then Western in the notion of a cultural landscape shaped by free thought and the chance for profit. Even non-Western innovations, like stirrups and gunpowder, have been quickly modified and improved by Western militaries. Jet fighters, GPS-guided bombs, and laser-guided munitions are all products of Western expertise. Even the jihadists’ most innovative and lethal weapons—improvised explosive devices and suicide belts—are cobbled together from Western-designed explosives and electronics.

The Industrial Revolution was based on two grand concepts that were profound in their simplicity. Innovators came up with ways to simplify endeavors by breaking them into easy, small tasks that could be accomplished on assembly lines. Then, beginning in the textile industry, inventors found ways to mechanize steps so that they could be performed by machines, many of them powered by steam engines. Babbage, building on ideas from Pascal and Leibniz, tried to apply these two processes to the production of computations, creating a mechanical precursor to the modern computer. His most significant conceptual leap was that such machines did not have to be set to do only one process, but instead could be programmed and reprogrammed through the use of punch cards. Ada saw the beauty and significance of that enchanting notion, and she also described an even more exciting idea that derived from it: such machines could process not only numbers but anything that could be notated in symbols.

The key to innovation—at Bell Labs and in the digital age in general—was realizing that there was no conflict between nurturing individual geniuses and promoting collaborative teamwork. It was not either-or. Indeed, throughout the digital age, the two approaches went together. Creative geniuses (John Mauchly, William Shockley, Steve Jobs) generated innovative ideas. Practical engineers (Presper Eckert, Walter Brattain, Steve Wozniak) partnered closely with them to turn concepts into contraptions. And collaborative teams of technicians and entrepreneurs worked to turn the invention into a practical product. When part of this ecosystem was lacking, such as for John Atanasoff at Iowa State or Charles Babbage in the shed behind his London home, great concepts ended up being consigned to history’s basement. And when great teams lacked passionate visionaries, such as Penn after Mauchly and Eckert left, Princeton after von Neumann, or Bell Labs after Shockley, innovation slowly withered.

To maintain order and structure in an evolving system requires the continual supply and use of energy whose by-product is disorder. That’s why to stay alive we need to continually eat so as to combat the inevitable, destructive forces of entropy production. Entropy kills. Ultimately, we are all subject to the forces of “wear and tear” in its multiple forms. The battle to combat entropy by continually having to supply more energy for growth, innovation, maintenance, and repair, which becomes increasingly more challenging as the system ages, underlies any serious discussion of aging, mortality, resilience, and sustainability, whether for organisms, companies, or societies.

THE TEN CHARACTERISTICS OF DIFFERENCE THINKERS They practice empathy because they care enough to make an impact. They have a clear sense of the change they want to make in the world. They are impatient about tactics and endlessly patient about implementing their strategy. They ask the right questions, and that means that they talk more than twice as much as they listen, because talking takes guts. Mostly, they ignore those who offer empty criticism. They watch what people do and don’t just believe what people tell them. They innovate and create at the edges, ignoring the market of everyone. They make products for their customers, instead of trying to find customers for their products. They understand that they need to give people a story to tell—a ‘you’ve gotta see this’ moment. They work hard to change how people feel, by creating intangible value that gives them an emotional point of difference. They understand that trust is their second-most valuable asset. The first is the willingness to be wrong for the right reason.

... schools in many industrialized nations were not, for the most part, designed to produce innovative thinkers or questioners -- their primary purpose was to produce workers. The author Seth Godin writes, "Our grandfathers and great grandfathers built schools to train people to have a lifetime of productive labor as part of the industrialized economy. And it worked." To create good workers, educations systems put a premium on compliancy and rote memorization of basic knowledge -- excellent qualities in an industrial worker. (Or, as the cartoonist and Simpsons creator Matt Groening puts it, "it seems the main rule that traditional schools teach is how to sit in rows quietly, which is perfect training for grown-up work in a dull office or factory, but not so good for education.") And not so good for questioning: To the extent a school is like a factory, students who inquire about "the way things are" could be seen as insubordinate. It raises, at least in my mind, a question that may seem extreme: If schools were build on a factory model, were they actually designed to squelch questions?

Each cooperative in Mondragon has its own workplace structure, though there are similarities and tendencies that most of them share. The firm called Irizar, which manufactures products for trans-portation, from luxury coaches to city buses, exemplifies these tendencies. To encourage innovation and the diffusion of knowledge, there are no bosses or departments in Irizar. Rather, it has a flat organizational structure based on work teams with a high degree of autonomy. (One study remarks that they “set their own targets, establish their own work schedules, [and] organize the work process as they see fit.”) The teams also work with each other, so that knowledge is transmitted efficiently. Participation occurs also in the general assembly, which meets three times a year rather than the single annual meeting common in other Mondragon firms. Its subsidiaries in other countries have at least two general assemblies a year, where they approve the company’s strategic plan, investments, etc. These participatory structures have enabled Irizar to surpass its competitors in profitability and market share.69

CEO Gil Amelio stumbled. Ellison may have been baffled when Jobs insisted that he was not motivated by money, but it was partly true. He had neither Ellison’s conspicuous consumption needs nor Gates’s philanthropic impulses nor the competitive urge to see how high on the Forbes list he could get. Instead his ego needs and personal drives led him to seek fulfillment by creating a legacy that would awe people. A dual legacy, actually: building innovative products and building a lasting company. He wanted to be in the pantheon with, indeed a notch above, people like Edwin Land, Bill Hewlett, and David Packard. And the best way to achieve all this was to return to Apple and reclaim his kingdom. And yet when the cup of power neared his lips, he became strangely hesitant, reluctant, perhaps coy. He returned to Apple officially in January 1997 as a part-time advisor, as he had told Amelio he would. He began to assert himself in some personnel areas, especially in protecting his people who had made the transition from NeXT. But in most other ways he was unusually passive. The decision not to ask him to join the board offended him, and he felt demeaned

Fiction is a set of observable manifestations, as represented and frozen in language, that triggers a profoundly subjective and individual experience. Ultimately, this is the kind of productive dilemma that can allow fiction to get to places that other media does not. Fiction is exceptionally good at providing models for consciousness, and at putting readers in a position to take upon themselves the structure of another consciousness for a short while. It is better at this than any other genre or media, and can do it in any number of modes (realistic or metafictional, reliably or unreliably, representationally or metafictionally, etc.). But for it to be able to do this as well as it possibly can, it must clear a space. This is where, for me, doing without becomes most crucial. The subtractions that we find in innovative fictions (even when those subtractions, as in Joyce's work, are followed by further ornamentations and encrustations) are there to facilitate the simulation of consciousness. What is subtracted is the significance and meaning designed to let us classify an experience without entering into it. Doing without such things opens the door wider for experience, putting the reader in a position where they are experiencing fiction in lieu of understanding it. By paying more attention to what we leave out than to how readers are going to interpret or work after the fact, we refuse to let fiction be assimilable, digestible, and safe. We keep it from being mere fodder for criticism and instead accept it as valid, vital experience.

Entrepreneurs are everywhere. You don’t have to work in a garage to be in a startup. The concept of entrepreneurship includes anyone who works within my definition of a startup: a human institution designed to create new products and services under conditions of extreme uncertainty. That means entrepreneurs are everywhere and the Lean Startup approach can work in any size company, even a very large enterprise, in any sector or industry. 2. Entrepreneurship is management. A startup is an institution, not just a product, and so it requires a new kind of management specifically geared to its context of extreme uncertainty. In fact, as I will argue later, I believe “entrepreneur” should be considered a job title in all modern companies that depend on innovation for their future growth. 3. Validated learning. Startups exist not just to make stuff, make money, or even serve customers. They exist to learn how to build a sustainable business. This learning can be validated scientifically by running frequent experiments that allow entrepreneurs to test each element of their vision. 4. Build-Measure-Learn. The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate that feedback loop. 5. Innovation accounting. To improve entrepreneurial outcomes and hold innovators accountable, we need to focus on the boring stuff: how to measure progress, how to set up milestones, and how to prioritize work. This requires a new kind of accounting designed for startups—and the people who hold them accountable.

The Entrepreneurial Model What does The Entrepreneur see off in the distance that The Technician finds so difficult to see? What exactly is the Entrepreneurial Model? It’s a model of a business that fulfills the perceived needs of a specific segment of customers in an innovative way. The Entrepreneurial Model looks at a business as if it were a product, sitting on a shelf and competing for the customer’s attention against a whole shelf of competing products (or businesses). Said another way, the Entrepreneurial Model has less to do with what’s done in a business and more to do with how it’s done. The commodity isn’t what’s important—the way it’s delivered is. When The Entrepreneur creates the model, he surveys the world and asks: “Where is the opportunity?” Having identified it, he then goes back to the drawing board and constructs a solution to the frustrations he finds among a certain group of customers. A solution in the form of a business that looks and acts in a very specific way, the way the customer needs it to look and act, not The Entrepreneur. “How will my business look to the customer?” The Entrepreneur asks. “How will my business stand out from all the rest?” Thus, the Entrepreneurial Model does not start with a picture of the business to be created but of the customer for whom the business is to be created. It understands that without a clear picture of that customer, no business can succeed. The Technician, on the other hand, looks inwardly, to

1. Live (or work) in the moment. Instead of always thinking about what’s next on your to-do list, focus on the task or conversation at hand. You will become not only more productive but also more charismatic. 2. Tap into your resilience. Instead of living in overdrive, train your nervous system to bounce back from setbacks. You will naturally reduce stress and thrive in the face of difficulties and challenges. 3. Manage your energy. Instead of engaging in exhausting thoughts and emotions, learn to manage your stamina by remaining calm and centered. You’ll be able to save precious mental energy for the tasks that need it most. 4. Do nothing. Instead of spending all your time focused intently on your field, make time for idleness, fun, and irrelevant interests. You will become more creative and innovative and will be more likely to come up with breakthrough ideas. 5. Be good to yourself. Instead of only playing to your strengths and being self-critical, be compassionate with yourself and understand that your brain is built to learn new things. You will improve your ability to excel in the face of challenge and learn from mistakes. 6. Show compassion to others. Instead of remaining focused on yourself, express compassion to and show interest in those around you and maintain supportive relationships with your co-workers, boss, and employees. You will dramatically increase the loyalty and commitment of your colleagues and employees, thereby improving productivity, performance, and influence. These

When historians write the epitaph for neoliberalism, they will have to conclude that it was the form of capitalism that systematically prioritized political imperatives over economic ones. That is: given a choice between a course of action that will make capitalism seem like the only possible economic system, and one that will make capitalism actually be a more viable long-term economic system, neoliberalism has meant always choosing the former. Does destroying job security while increasing working hours really create a more productive (let alone innovative, loyal) workforce? There is every reason to believe that exactly the opposite is the case. In purely economic terms the result of neoliberal reform of labor markets is almost certainly negative—an impression that overall lower economic growth rates in just about all parts of the world in the eighties and nineties would tend to reinforce. However it has been spectacularly effective in depoliticizing labor. The same could be said of the burgeoning growth in armies, police, and private security services. They’re utterly unproductive—nothing but a resource sink. It’s quite possible, in fact, that the very weight of the apparatus created to ensure the ideological victory of capitalism will itself ultimately sink it. But it’s also easy to see how, if the ultimate imperative of those running the world is choking off the possibility of any sense of an inevitable, redemptive future that will be fundamentally different than the world today must be a crucial part of the neoliberal project. Antithesis Yet even those areas of science and technology that did receive massive funding have not seen the breakthroughs originally anticipated

Impact is a critically important concept when it comes to social innovation, generally used in the context of measuring whether social interventions do or don’t work. But conceptually, it’s very similar to the problem of measuring success in a business before you have profits. That’s why lean methods are so perfectly suited to this kind of work. The only real difference is that instead of talking about maximizing shareholder value, Lean Impact talks about maximizing social impact. An advance party of pioneers, some of whom you’ll read about here, is already doing this, but we need more. This book is a way to help add to their numbers. Lean Impact is not only transformational for the social sector, though. My hope is that people in other kinds of businesses and organizations will also pick it up and, after reading about the dedicated people and clear strategies whose stories Ann Mei has gathered, think about how the products and institutions they build affect the world. All of us have more to learn about how we make impact so we can move together into this new era. —Eric Ries, author of The Lean Startup and The Startup Way

Specialisation, accompanied by exchange, is the source of economic prosperity. Here, in my own words, is what a modern version of Smithism claims. First, the spontaneous and voluntary exchange of goods and services leads to a division of labour in which people specialise in what they are good at doing. Second, this in turn leads to gains from trade for each party to a transaction, because everybody is doing what he is most productive at and has the chance to learn, practise and even mechanise his chosen task. Individuals can thus use and improve their own tacit and local knowledge in a way that no expert or ruler could. Third, gains from trade encourage more specialisation, which encourages more trade, in a virtuous circle. The greater the specialisation among producers, the greater is the diversification of consumption: in moving away from self-sufficiency people get to produce fewer things, but to consume more. Fourth, specialisation inevitably incentivises innovation, which is also a collaborative process driven by the exchange and combination of ideas. Indeed, most innovation comes about through the recombination of existing ideas for how to make or organise things. The more people trade and the more they divide labour, the more they are working for each other. The more they work for each other, the higher their living standards. The consequence of the division of labour is an immense web of cooperation among strangers: it turns potential enemies into honorary friends. A woollen coat, worn by a day labourer, was (said Smith) ‘the produce of a great multitude of workmen. The shepherd, the sorter of the wool, the wool-comber or carder, the dyer, the scribbler, the spinner, the weaver, the fuller, the dresser . . .’ In parting with money to buy a coat, the labourer was not reducing his wealth. Gains from trade are mutual; if they were not, people would not voluntarily engage in trade. The more open and free the market, the less opportunity there is for exploitation and predation, because the easier it is for consumers to boycott the predators and for competitors to whittle away their excess profits. In its ideal form, therefore, the free market is a device for creating networks of collaboration among people to raise each other’s living standards, a device for coordinating production and a device for communicating information about needs through the price mechanism. Also a device for encouraging innovation. It is the very opposite of the rampant and selfish individualism that so many churchmen and others seem to think it is. The market is a system of mass cooperation. You compete with rival producers, sure, but you cooperate with your customers, your suppliers and your colleagues. Commerce both needs and breeds trust.

A 1997 study of the consumer product design firm IDEO found that most of the company’s biggest successes originated as “combinations of existing knowledge from disparate industries.” IDEO’s designers created a top-selling water bottle, for example, by mixing a standard water carafe with the leak-proof nozzle of a shampoo container. The power of combining old ideas in new ways also extends to finance, where the prices of stock derivatives are calculated by mixing formulas originally developed to describe the motion of dust particles with gambling techniques. Modern bike helmets exist because a designer wondered if he could take a boat’s hull, which can withstand nearly any collision, and design it in the shape of a hat. It even reaches to parenting, where one of the most popular baby books—Benjamin Spock’s The Common Sense Book of Baby and Child Care, first published in 1946—combined Freudian psychotherapy with traditional child-rearing techniques. “A lot of the people we think of as exceptionally creative are essentially intellectual middlemen,” said Uzzi. “They’ve learned how to transfer knowledge between different industries or groups. They’ve seen a lot of different people attack the same problems in different settings, and so they know which kinds of ideas are more likely to work.” Within sociology, these middlemen are often referred to as idea or innovation brokers. In one study published in 2004, a sociologist named Ronald Burt studied 673 managers at a large electronics company and found that ideas that were most consistently ranked as “creative” came from people who were particularly talented at taking concepts from one division of the company and explaining them to employees in other departments. “People connected across groups are more familiar with alternative ways of thinking and behaving,” Burt wrote. “The between-group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely to have ideas evaluated as valuable.” They were more credible when they made suggestions, Burt said, because they could say which ideas had already succeeded somewhere else.

The same thing, notes Brynjolfsson, happened 120 years ago, in the Second Industrial Revolution, when electrification—the supernova of its day—was introduced. Old factories did not just have to be electrified to achieve the productivity boosts; they had to be redesigned, along with all business processes. It took thirty years for one generation of managers and workers to retire and for a new generation to emerge to get the full productivity benefits of that new power source. A December 2015 study by the McKinsey Global Institute on American industry found a “considerable gap between the most digitized sectors and the rest of the economy over time and [found] that despite a massive rush of adoption, most sectors have barely closed that gap over the past decade … Because the less digitized sectors are some of the largest in terms of GDP contribution and employment, we [found] that the US economy as a whole is only reaching 18 percent of its digital potential … The United States will need to adapt its institutions and training pathways to help workers acquire relevant skills and navigate this period of transition and churn.” The supernova is a new power source, and it will take some time for society to reconfigure itself to absorb its full potential. As that happens, I believe that Brynjolfsson will be proved right and we will start to see the benefits—a broad range of new discoveries around health, learning, urban planning, transportation, innovation, and commerce—that will drive growth. That debate is for economists, though, and beyond the scope of this book, but I will be eager to see how it plays out. What is absolutely clear right now is that while the supernova may not have made our economies measurably more productive yet, it is clearly making all forms of technology, and therefore individuals, companies, ideas, machines, and groups, more powerful—more able to shape the world around them in unprecedented ways with less effort than ever before. If you want to be a maker, a starter-upper, an inventor, or an innovator, this is your time. By leveraging the supernova you can do so much more now with so little. As Tom Goodwin, senior vice president of strategy and innovation at Havas Media, observed in a March 3, 2015, essay on TechCrunch.com: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.