Product Innovation Quotes

You are what you share.

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.

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.

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The moment you will stop innovating, somebody else will make your product outdated and will become the market leader.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

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

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.

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.

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.

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.

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.

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.

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.

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.

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

Innovation arises from cognitive diversity. In productive arguments, opinions are exchanged, ideas are debated and beliefs are challenged. Beneficial arguments make us wiser.

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.

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

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.

Profit enables businesses to innovate and develop sustainable solutions, such as environmentally friendly technologies, socially responsible products, and ethical supply chains.

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

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.

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.

Innovation basically involves making obsolete that which you did before.

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.

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

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.

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.

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

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…

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.

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.

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.

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.

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.

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

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

Innovation is a by-product of empathy.

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

Most important, teams working in this system begin to measure their productivity according to validated learning, not in terms of the production of new features.

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.

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 CEO and VP of product, instead of building their business, are engaged in the drudgery of solving just one customer’s problem. Instead of marketing themselves to millions, they sold themselves to one.

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.

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.

As artificial intelligence proliferates, users who intimately understand the nuances, limitations, and abilities of AI tools are uniquely positioned to unlock AI’s full innovative potential. These user innovators are often the source of breakthrough ideas for new products and services.

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.

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.

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.

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

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.

In order for an idea to be viable, there has to be a market willing to pay money for that idea, presented as a product or service.

Starting with the customer, market, and price is the only approach for product success.” —

A product in the marketplace is the result of thought in an inner space and action more than the common place.

the second is that if you haven’t found a market to sell the product, you have not innovated.34

Products that delight customers do the unexpected. They solve a problem customers didn’t know they had, or they evoke a positive emotion.

The future never enters the present as a finished product, but that doesn’t stop people from expecting it to arrive that way.

Part of the special challenge of being a startup is the near impossibility of having your idea, company, or product be noticed by anyone, let alone a competitor.

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

Indifference to growth is heresy among Western capitalists. Yet no-growth business makes up a large part of the economy already. No one expects their local family-run restaurant to endlessly enlarge. That same model is common among the longest-lived businesses, said Tetsuya O'Hara, a product innovation consultant who has worked with Gap Inc. and Patagonia....Japan is a hotbed for them (long lived-businesses) with nearly thirty-five thousand companies that are more than a century old, and dozens that have endured for more than five hundred years.

We need to be happy in order to be productive. We need to push the boundaries of the workplace and allow adults to tap into their inner child in order to maximize success and innovation.

the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

stronger education leads to stronger technological innovation, which leads to increased productivity and increased shares of trade, greater wealth, more military power, and eventually the establishment of a reserve currency. Further, having strong leaders, a population that is well-educated and civil with each other, a system that efficiently allocates capital and other resources, access to natural resources, and favorable geography all help a lot, and when they decline, they tend to decline together.

. 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.

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.

Creating the right experiences and then integrating around them to solve a job, is critical for competitive advantage. That’s because while it may be easy for competitors to copy products, it’s difficult for them to copy experiences that are well integrated into your company’s processes. But to do all this well takes a holistic

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.

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.

We’d like to believe that efficient, useful, cost-effective products and services are the way to succeed. That hard work is its own reward. Most marketers carry around a worldview that describes themselves as innovators, not storytellers.

When most people hear the word “price,” they think of a number. That's a price point. When we use the term price, we are trying to get at something more fundamental. We want to understand the perceived value that the innovation holds for the customer.

Focus is scary—until you realize that it only means turning your back on markets you could never have anyway. Sharp focus on jobs that customers are trying to get done holds the promise of greatly improving the odds of success in new-product development.

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.

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.

Once the baseline has been established, the startup can work toward the second learning milestone: tuning the engine. Every product development, marketing, or other initiative that a startup undertakes should be targeted at improving one of the drivers of its growth model.

However inventive humans turn out to be, they will never invent their way around the laws of thermodynamics. That fundamental truth is denied by standard infinite-growth theory, which blithely projects productivity gains from technological innovation indefinitely into the future.

When we buy a product, we essentially “hire” something to get a job done. If it does the job well, when we are confronted with the same job, we hire that same product again. And if the product does a crummy job, we “fire” it and look around for something else we might hire to solve the problem.

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.

Cheating and covering up are natural by-products of a top-down culture that does not accept “no” or “it can't be done” for an answer. But combining this culture with a belief that a brilliant strategy formulated in the past will hold indefinitely into the future becomes a certain recipe for failure.

In my Toyota interviews, when I asked what distinguishes the Toyota Way from other management approaches, the most common first response was genchi gembutsu—whether I was in manufacturing, product development, sales, distribution, or public affairs. You cannot be sure you really understand any part of any business problem unless you go and see for yourself firsthand. It is unacceptable to take anything for granted or to rely on the reports of others.

Ask one question: Would a Millennial (anyone born between 1980 and 2000) look forward to working here? Try this exercise. Take a group of people into a large, open room with tackable wall surfaces or whiteboards. Give them large sheets of paper, sticky notes, markers, and tape. Ask them to create a concept for a work environment (don't say “office”) using the following words: high-energy, collaborative, healthy, productive, engaging, innovative, interactive, high-tech, and regenerating.

narrowly focused specialists may be good at incremental innovation. But breakthrough innovation is often the product of temporary teams whose members cross disciplinary boundaries—at a time when breakthroughs in every field are, in fact, blurring those very boundaries. And this is not just a matter for scientists and researchers.

When we innovate more efficient ways to use energy and resources, total consumption may briefly drop, but it quickly rebounds to an even higher rate. Why? Because companies use the savings to reinvest in ramping up more production. In the end, the sheer scale effect of growth swamps even the most spectacular efficiency improvements.

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

More individualistic countries are also richer, more innovative, and more economically productive.

Ensure that value is created for all stakeholders – customers, employees, partners, society, and investors – simultaneously

Production is important because it provides the material basis for happiness but it is only the means not the end.

I believe we need to evolve and adapt to changing circumstances, always striving to improve and innovate.

A traditional project manager focuses on following the plan with minimal changes, whereas an agile leader focuses on adapting successfully to inevitable changes.

Agility is principally about mindset, not practices.

Get the right people involved, and self-discipline comes more easily. Get the wrong people, and imposed discipline creeps in, destroying trust and respect.

The Lean Startup asks people to start measuring their productivity differently. Because startups often accidentally build something nobody wants, it doesn’t matter much if they do it on time and on budget. The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible. In other words, the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

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.

Predictable marketing requires an understanding of the circumstances in which customers buy or use things. Specifically, customers—people and companies—have “jobs” that arise regularly and need to get done. When customers become aware of a job that they need to get done in their lives, they look around for a product or service that they can “hire” to get the job done.

Project leaders need to focus on value in several ways: value determination (with product owners), value prioritization (backlog management), and value creation (iterative development).

Finally, goals and objectives for each area need to be set. Everyone who takes on the primary responsibility for a key activity, whether product development or people, or money, must be asked: ‘What can this enterprise expect of you? What should we hold you accountable for? What are you trying to accomplish and by what time?’ But this is elementary management, of course.

There is always a price to pay when energy is processed; there is no free lunch. Because energy underlies the transformation and operation of literally everything, no system operates without consequences. Indeed, there is a fundamental law of nature that cannot be transgressed, called the Second Law of Thermodynamics, which says that whenever energy is transformed into a useful form, it also produces “useless” energy as a degraded by-product: “unintended consequences” in the form of inaccessible disorganized heat or unusable products are inevitable. There

Companies with strong product-driven or engineering cultures tend to be the ones that develop feature shocks. Firms with a culture of playing it safe and avoiding big risks typically suffer minivations. Hidden gems most often afflict companies that coddle the core business. And undeads are born in firms whose top-down cultures discourage feedback and criticism from below. Let

Only 5 percent of entrepreneurship is the big idea, the business model, the whiteboard strategizing, and the splitting up of the spoils. The other 95 percent is the gritty work that is measured by innovation accounting: product prioritization decisions, deciding which customers to target or listen to, and having the courage to subject a grand vision to constant testing and feedback.

Biomimicry is not meant to be taken as an end-all, be-all; it serves as inspiration within a set of limitations. Evolution does not have an inventive mind like engineers, and animals have biological constraints such as the need to eat, reproduce, and defecate—necessities our products and machines can go without. However, biological designs can provide fresh solutions to old paradigms.

In any event, there was no “fall” into “Dark Ages.” Instead, once freed of the bondage of Rome, Europe separated into hundreds of independent “statelets.”16 In many of these societies progress and increased production became profitable, and that ushered in “one of the great innovative eras of mankind,” as technology was developed and put into use “on a scale no civilization had previously known.

Disruptive technologies bring to a market a very different value proposition than had been available previously. Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value. Products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use. There

The reason, according to Fortune, was that Six Sigma got in the way of innovation. Too much energy was spent cutting defects to 3.4 per million, and not enough energy was expended developing new product ideas.

New situations, however, do arise, requiring novel, unstereotyped responses; hence development, in the higher organisms, requires a capacity for experiment and innovation—the social correlates of variation and mutation. Social evolution is an interplay of custom with origination. Here the initiative individual—the “great man,” the “hero,” the “genius”—regains his place as a formative force in history. He is not quite the god that Carlyle described; he grows out of his time and land, and is the product and symbol of events as well as their agent and voice; without some situation requiring a new response his new ideas would be untimely and impracticable

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.

There is a lot of money in Africa. There’s a lot of value being created by the people of Africa, from Egypt to Ghana to Zambia and everywhere in between. Ideas are flowing from African minds, innovations are emerging from African intellect, African businesses are providing solutions and valuable products and services. We are seeing it now and we will see it even more as the century progresses. As an investor, I’m putting big bets on Africa.

If an idea begat a discovery, and if a discovery begat an invention, then an innovation defined the lengthy and wholesale transformation of an idea into a technological product (or process) meant for widespread practical use.

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.

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.

genuine innovations are not just about brilliant insights. They’re the result of taking those insights and turning them into things that people will actually use and then finding a way to get those products into people’s hands.

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.

Music can trigger feelings, which in turn produce thoughts and images in our minds — it is these thoughts and images that can become novel solutions and innovative new ideas. Music is therefore directly related to the production of new ideas.

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. By and large, a disruptive technology is initially embraced by the least profitable customers in a market. Hence, most companies with a practiced discipline of listening to their best customers and identifying new products that promise greater profitability and growth are rarely able to build a case for investing in disruptive technologies until it is too late.

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.

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.

Half-formed ideas, they float around. They come from different places, and the mind has got this wonderful way of somehow just shoveling them around until one day they fit. They may fit not so well, and then we go for a bike ride or something, and it’s better.

The more the customer is involved in the process of service production and delivery, the greater the perceived value and satisfaction. . . Consumers (as individuals and as a group of interacting subjects) become partial employees and employees become partial consumers.

It might have been said in 1948 that you either grasped the immense importance of the transistor or you did not. Usually an understanding of the device took time, since there were no tangible products—no proof—to demonstrate how it might someday alter technology or culture.

The “quality revolution” in the latter half of the 20th century has taken us to a point where all products that reach a supermarket shelf work. The competitive differentiators of the future will be products which are the most innovative, even though they may not be the best

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.

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.

An excerpt from “Recess Theory,” by Axelrod MacMurray: We need to be happy in order to be productive. We need to push the boundaries of the workplace and allow adults to tap into their inner child in order to maximize success and innovation. It is important for the adult employee to be given time to be social in an unstructured and creative way during the work day and it is incumbent upon managers to foster this. The focus of the play should not have a goal. Used properly in the workplace, an hour of playtime will ultimately increase your output exponentially.

Jaime figured that among the Xalisco Boys’ greatest innovations was figuring out that a mother lode of heroin demand was now waiting to be mined in these neighborhoods if they’d only offer convenience. The Happy Meal of dope, he called it. Marketed like fast food—to young people. “‘We want what we want when we want it and thus we are entitled to get it,’” he said. “This drug is following the same marketing [strategy] of every other product out there. ‘I’ll give you good heroin at a great price. You don’t have to go to the bad neighborhoods. I’ll deliver it for you.

Internet is special because it’s a powerful enabler of disruptive innovation – defined as ‘a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors’.

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.

Yes, you’re an imposter. But you’re an imposter acting in service of generosity, seeking to make things better. When we embrace imposter syndrome instead of working to make it disappear, we choose the productive way forward. The imposter is proof that we’re innovating, leading, and creating.

Eugene Gordon, points out that there were two corollaries to Morton’s view of innovation: The first is that if you haven’t manufactured the new thing in substantial quantities, you have not innovated; the second is that if you haven’t found a market to sell the product, you have not innovated.

Is it weird that when I see a cool t shirt or pick up a toothbrush or see a new car I don't think about the product itself? I think about the thousands of people and dollars to make it. I think about how the retailer that took the risk to buy and resell it. Then I work backwards to the store costs, the distributer who got it there, the shipping company that brought it over from China, the factory workers that made it, the people that sourced the materials and the people that harvested the raw materials, and on and on.. . The global economy is amazing. Your $20 t-shirt is a freaking miracle.

Athens reacted to the population problem in a different way again. She specialized her agricultural production for export, started manufactures also for export and then developed her political institutions so as to give a fair share of political power to the new classes which had been called into being by these economic innovations. In other words, Athenian statesmen averted a social revolution by successfully carrying through an economic and political revolution; and, discovering this solution of the common problem in so far as it affected themselves, they incidentally opened up a new avenue of advance for the whole of the Hellenic Society.

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

Well, getting all the education and the practical experience. And then having the patience to do it day in and day out. Day in and day out. It’s not easy, let me tell you that. It’s like the restaurateur serving great food every meal. It’s not easy. But that’s how you make a great restaurant. That’s how you make a great car dealership. Service every day. You can’t miss the ball. You’ve gotta hit the ball out of the park every day. With service. And the same with technology. In our lifetime, we’ve seen many companies go in the tank because they weren’t able to innovate. Or actually, they didn’t figure out a product or service that really served the customer well. They lost their customers. Never lose a customer. Figure that one out.

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

The R6 Resilience Change Management Framework is a cyclical framework that consists of six iterative puzzle pieces: 1. Review the Macro/Micro Changes: This iteration emphasizes the importance of scanning (mostly) the external environment to identify emerging trends, disruptions, and opportunities. By understanding the broader context in which the organization operates, leaders can anticipate future challenges and proactively adapt their strategies. There should never be a time in the organizations existence where it stops reviewing the macro changes. There are times, though, when micro changes (internal) are where the focus needs to be. 2. Reassess the Business’ Capabilities in the Context of Macro Changes: This iteration is fundamentally about “who are we, and how can we really add value?” It also involves a critical evaluation of the organization's strengths, weaknesses, opportunities, and threats in light of the identified macro changes. This reassessment helps to identify areas where the organization needs to adapt or transform its capabilities to remain competitive. This iteration is largely inward-looking, focused on the organization. But it tempered with the idea that “how do our capabilities allow us to add value to our customers lives (existing or new).” 3. Redefine Target Market(s) Based on Reassessment of Capabilities: This iteration focuses on aligning the organization's target markets with the evolving needs and preferences of customers, the changing competitive landscape, and the new reality of the businesses capabilities. This may involve identifying new customer segments, developing personalized offerings, creating seamless omnichannel experiences, or approaching the same target market in new ways (offering them new kinds of value, or the same kind of value in new ways). 4. Redirect Capabilities Toward Redefined Target Market: This iteration involves realigning the organization's resources, processes, and strategies to effectively serve the redefined target markets. This may require investments in new technologies, optimization of supply chains, or the development of innovative products and services. 5. Restructure the Organization: This iteration focuses on adapting the organization's structure, culture, and talent to support the desired changes. This may involve creating agile teams, fostering a culture of innovation, or empowering employees to make decisions through new policies. 6. Repeat in Perpetuity – or – Render Paradigm Shift [R6-RPS]: This iteration underscores the importance of continuous monitoring, evaluation, and adaptation. The R6 framework is not a one-time process in response to a change event, but an iterative cycle that enables organizations to remain agile and resilient in the face of ongoing change. Additionally, there are times when before repeating the cycle, a business may want/need to render an external paradigm shift by introducing a product or service or way of doing things that fundamentally changes the market – fundamentally changes the value exchange between customers, employees and organizations.

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.

There's no "get rich quick." There's no "overnight success." However, this doesn't mean that when you decide to start a business that you're just starting. You could start making new money tomorrow. I was fishing with my son and taught him that you can't catch a fish unless your line is in the water. A truth my dad once taught me. You may have spent years learning a skill or creating a product or service that you just simply haven't thought to monetize. Like leaving a fishing pole on the ground along side the river, but not having your line in the water yet. All you need to create a new stream of income is to make something consumable and offer it at a price that someone will pay. If you're not making offers, you're not making money. Get your line in the water!

The capability of self-organizing teams lies in collaboration. When two engineers scratch out a design on a whiteboard, they are collaborating. When team members meet to brainstorm a design, they are collaborating. When team leaders meet to decide whether a product is ready to ship, they are collaborating. The result of any collaboration can be categorized as a tangible deliverable, a decision, or shared knowledge.

Embrace Cursive Schools are downplaying—and even eliminating—the need to learn to write cursive, despite its necessity to engage highly complex cognitive processes and achieve mastery of a precise motor coordination. (It takes children years to master handwriting and some stroke victims relearn language by tracing letters with their fingers.) Writing in cursive also increases a sense of harmony and balance, and writing on paper provides creative options: to manipulate the medium in multidimensional, innovative, or expressive ways (such as cutting, folding, pasting, ripping, or coloring the paper). Also, when you write in longhand on paper and then edit, there’ll be a visual and tactile record of your creative process for you and others to study. Learning to write (and writing) in cursive, on paper, fosters creativity and should not be surrendered.

For a specific date in the first energy transition—coal’s becoming a distinctive industrial fuel, superior to wood—January 1709 could well do. That month, Abraham Darby, an English metalworker and Quaker entrepreneur, working his blast furnace in a village called Coalbrookdale, figured out a way to remove impurities from coal, thus turning it into coke, a higher-carbon version of coal. The coke replaced charcoal, which is partly-burned wood, and had been the standard fuel for smelting. Darby was convinced, he said, “that a more effective means of iron production may be achieved.” He was also ridiculed. “There are many who doubt me foolhardy,” he said. But his method worked.1 Though it took a few decades to spread, Darby’s innovation lowered the cost of smelting iron, making iron much more available for industrial uses, helping to spur the Industrial Revolution.

The Toyota Production System unlocked employees’ capacity to suggest innovations by giving them more control. The Disney system does something different. It forces people to use their own emotions to write dialogue for cartoon characters, to infuse real feelings into situations that, by definition, are unreal and fantastical. This method is worth studying because it suggests a way that anyone can become an idea broker: by drawing on their own lives as creative fodder. We all have a natural instinct to overlook our emotions as creative material. But a key part of learning how to broker insights from one setting to another, to separate the real from the clichéd, is paying more attention to how things make us feel. “Creativity is just connecting things,” Apple cofounder Steve Jobs said in 1996. “When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something.

With all production, employment, and distribution of output completely under the monopoly control of the State, the fate and fortune of every individual would be at the mercy of the political authority. In addition, these earlier opponents of socialism had cogently argued that with the end of private property and freedom of enterprise, individuals would lose much of the self-interested motivation for industry, innovation, and work effort that exists in a market economy.

Aided by the young George Pullman, who would later make a fortune building railway cars, Chesbrough launched one of the most ambitious engineering projects of the nineteenth century. Building by building, Chicago was lifted by an army of men with jackscrews. As the jackscrews raised the buildings inch by inch, workmen would dig holes under the building foundations and install thick timbers to support them, while masons scrambled to build a new footing under the structure. Sewer lines were inserted beneath buildings with main lines running down the center of streets, which were then buried in landfill that had been dredged out of the Chicago River, raising the entire city almost ten feet on average. Tourists walking around downtown Chicago today regularly marvel at the engineering prowess on display in the city’s spectacular skyline; what they don’t realize is that the ground beneath their feet is also the product of brilliant engineering.

Like the railroads that bankrupted a previous generation of visionary entrepreneurs and built the foundations of an industrial nation, fiber-optic webs, storewidth breakthroughs, data centers, and wireless systems installed over the last five years will enable and endow the next generation of entrepreneurial wealth. As Mead states, "the hardest thing I ever had to do in my life was to get a company going during the bubble". Now, Mead says, "there's space available; you can get fab runs; you can get vendors to answer the phone. You can make deals with people; you can sit down and they don't spend their whole time telling you how they're a hundred times smarter than you. It's absolutely amazing. You can actually get work done now, which means what's happening now is that the entrepreneurs, the technologists, are building the next generation technology that isn't visible yet but upon which will be built the biggest expansion of productivity the world has ever seen.

For the existing enterprise, whether business or public-service institution, the controlling word in the term ‘entrepreneurial management’ is ‘entrepreneurial’. For the new venture, it is ‘management’. In the existing business, it is the existing that is the main obstacle to entrepreneurship. In the new venture, it is its absence. The new venture has an idea. It may have a product or a service. It may even have sales, and sometimes quite a substantial volume of them. It surely has costs. And it may have revenues and even profits. What it does not have is a ‘business’, a viable, operating, organized ‘present’ in which people know where they are going, what they are supposed to do, and what the results are or should be. But unless a new venture develops into a new business and makes sure of being ‘managed’, it will not survive no matter how brilliant the entrepreneurial idea, how much money it attracts, how good its products, nor even how great the demand for them.

A language may be like other cultural products, which may be used at different times by innovators, early adopters, early majorities, late majorities, and laggards. […] This new usage may fall dead born from the innovators lips or be welcomed into a segment of the community with open arms. The reception is partly capricious, but when a new combination does catch on, it could involve the later adopters grasping the rationale with the stroke of insight recapitulating that of the original coiner, their dumbly memorising the verb in that construction, or something in between. […] Can we catch innovators in the act of stretching the language? It happens all the time. Though linguists often theorise about a language as if it were the fixed protocol of a homogeneous community of idealised speakers, like the physicists’ frictionless plane an ideal gas, they also know that a real language is constantly being pushed and pulled at the margins by different speakers in different ways.

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

The agile value "Delivering Value over Meeting Constraints" provides a focus for rethinking how we measure performance on projects. Although constraints such as cost and time are important, they should be secondary to creating value for customers. All too often, we focus on what is easily measurable and ignore really important characteristics that are harder to quantify. Agile development attempts to change that bias and focus on the most important things, and value is at the top of that list.

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

Morton would eventually think more deeply about the innovative process than any Bell Labs scientist, with the possible exception of Kelly. In his view, innovation was not a simple action but “a total process” of interrelated parts. “It is not just the discovery of new phenomena, nor the development of a new product or manufacturing technique, nor the creation of a new market,” he later wrote. “Rather, the process is all these things acting together in an integrated way toward a common industrial goal.

Life of a software engineer sucks big time during project release. Every single team member contribution is very important. At times, we have to skip breakfast, lunch and even dinner, just to make sure the given ‘TASK’ is completed. Worst thing, that’s the time we get to hear wonderful F* words. It can be on conference calls or on emails, still we have to focus and deliver the end product to a client, without any compromise on quality. Actually, every techie should be saluted. We are the reason for the evolution of Information Technology. We innovate. We love artificial intelligence. We create bots and much more. We take you closer to books. Touch and feel it without the need of carrying a paperback. We created eBook and eBook reader app: it’s basically a code of a software engineer that process the file, keeps up-to-date of your reading history, and gives you a smoother reading experience. We are amazing people. We are more than a saint of those days. Next time, when you meet a software engineer, thank him/her for whatever code he/she developed, tested, designed or whatever he/she did!

By the time I got to work, I had this realization that I didn’t have any more goals.”26 For the next two months, he assiduously tended to the task of finding for himself a worthy life goal. “I looked at all the crusades people could join, to find out how I could retrain myself.” What struck him was that any effort to improve the world was complex. He thought about people who tried to fight malaria or increase food production in poor areas and discovered that led to a complex array of other issues, such as overpopulation and soil erosion. To succeed at any ambitious project, you had to assess all of the intricate ramifications of an action, weigh probabilities, share information, organize people, and more. “Then one day, it just dawned on me—BOOM—that complexity was the fundamental thing,” he recalled. “And it just went click. If in some way, you could contribute significantly to the way humans could handle complexity and urgency, that would be universally helpful.”27 Such an endeavor would address not just one of the world’s problems; it would give people the tools to take on any problem.

The key stone of Westem civilization is the sphere of spontaneous action it secures to the individual. There have always been attempts to curb the individuais initiative, but the power of the persecutors and inquisitors has not been absolute. It could not prevent the rise of Greek philosophy and its Roman offshoot or the development of modem science and philosophy. Driven by their inborn genius, pioneers have accomplished their work in spite of ali hostility and opposition. The innovator did not have to wait for invitation or order from anybody. He could step forward of his own accord and defy traditional teachings. In the orbit of ideas the West has by and large always enjoyed the blessings of freedom. Then came the emancipation of the individual in the field of business, an achievement of that new branch of philosophy, economics. A free hand was given to the enterprising man who knew how to enrich his fellows by improving the methods of production. A horn of plenty was poured upon the common men by the capitalistic business principie of mass production for the satisfaction of the needs of the masses.

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

WE LIVE IN AN age of nontraditional ladder climbing. Not just in politics, but in business and personal development and education and entertainment and innovation. Traditional paths are not just slow; they’re no longer viable if we want to compete and innovate. That’s great news, because throwing out the dues paradigm leads us toward meritocracy. But to be successful, we need to start thinking more like hackers, acting more like entrepreneurs. We have to work smarter, not just harder. We’ll see throughout the following chapters how Sinatra-style credibility and ladder switching—always parlaying for something more—are the foundation for how the most interesting people and companies in the world succeed. It’s not just how presidents get to the top. It’s how CEOs and comedians and racecar drivers hone their skills and make it in the big leagues. It’s how new businesses grow fast, and old businesses grow faster. It’s how entrepreneurs create life-changing products in record time and inventors parlay dreams for bigger dreams. Hacking the ladder is the mind-set they use to get places. The rest of this book is about becoming good enough to deserve it.

Outcomes indicators include product vision, business objectives, and capabilities (high-level product functionality), not detail requirements. These outcome characteristics define a releasable product and quality objectives define a reliable and adaptable (works today, easy to enhance) product. These are the critical value traits, then teams need to strive to meet constraints—scope, schedule, and cost—but as secondary in importance to the value components. In many, if not most, agile projects schedule becomes the most critical constraint and is timeboxed (fixed) and scope varies.

Even stranger than our teeth-brushing behaviour is our preference for stripy toothpaste. When it first appeared, in a product called Stripe, it aroused a great deal of debate over how it was made. Many people dissected the empty container; others froze a full tube and then cut it open in a cross section.* What was strange was that nobody ever asked ‘Why?’ After all, the moment toothpaste enters your mouth, all the ingredients are mixed together, so what was the point of keeping them separate in the tube? There are two explanations: 1) simple childish novelty and 2) psycho-logic. Psychologically, the stripes serve as a signal: a claim that a toothpaste performed more than one function (fighting cavities, tackling infection and freshening breath) was thought to be more convincing if the toothpaste contained three visibly separate active ingredients. In general, people are impressed by any visible extra effort that goes into a product: if you simply say ‘this washing powder is better than our old powder’, it is a hollow claim. However, if you replace the powder with a gel, a tablet or some other form, the cost and effort which have gone into the change make it more plausible to the purchaser there may have been some real innovation in the new contents.

But was the Newton a failure? The timing of Newton’s entry into the handheld market was akin to the timing of the Apple II into the desktop market. It was a market-creating, disruptive product targeted at an undefinable set of users whose needs were unknown to either themselves or Apple. On that basis, Newton’s sales should have been a pleasant surprise to Apple’s executives: It outsold the Apple II in its first two years by a factor of more than three to one. But while selling 43,000 units was viewed as an IPO-qualifying triumph in the smaller Apple of 1979, selling 140,000 Newtons was viewed as a failure in the giant Apple of 1994.

The history of human communities and world development highlights the extent to which migration has been an engine of social progress. By viewing our collective past through the lens of migration, we can appreciate how the movement of people across cultural frontiers has brought about the globalized and integrated world we inhabit today. . . . As people moved they have encountered new environments and cultures that compel them to adapt and innovate novel ways of doing things. The development of belief systems and technologies, the spread of crops and production methods, have often arisen out of the experiences of, or encounters with, migrants.

Where the workers behind the Lucas Plan had laid the foundations for the development of an economy that respected the dignity, creativity, and autonomy of workers, Thatcher used her control over the state to ruthlessly reassert the power of capital over labor. Cloaking her project in the language of freedom and autonomy, she crushed one of the most innovative and ingenious examples of democratic production on the world had ever seen. The success of the neoliberal movement ensured that 'individualized consumerism rather than collective services and a democratized state and economy became the main legacy of working-class struggles during the twentieth century.

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.

It was a wake-up call to me to learn that Airbnb was by no means unique: Instagram started as a location-based social network called Burbn (which had an optional photo feature). It attracted a core group of users and more than $500,000 in funding. And yet the founders realized that its users were flocking to only one part of the app—the photos and filters. They had a meeting, which one of the founders recounts like this: “We sat down and said, ‘What are we going to work on next? How are we going to evolve this product into something millions of people will want to use? What is the one thing that makes this product unique and interesting?’”7 The service soon retooled to become Instagram as we know it: a mobile app for posting photos with filters. The result? One hundred thousand users within a week of relaunching. Within eighteen months, the founders sold Instagram to Facebook for $1 billion. I know that seems simple, that the marketing lesson from Instragram is that they made a product that was just awesome. But that’s good news for you—it means there’s no secret sauce, and the second your product gets to be that awesome, you can see similar results. Just look at Snapchat, which essentially followed the same playbook by innovating in the mobile photo app space, blew up with young people, and skyrocketed to a $3.5-billion-dollar valuation with next-to-no marketing.

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.

In the wider context, there is an ongoing shift from industrial economies to knowledge economies and creative economies, from manufacturing-based processes to information-based and idea-based processes, and from international trade agreements and restrictions to increasingly competitive market challenges from emerging and expanding economies worldwide. In terms of design, this impact is apparent in the evolution of design debates: from ‘style and aesthetics’ to a means of improving products, services, innovation processes and operational efficiencies. The focus of design is now on improving customer services and experiences, and creating better efficiencies and waste reduction strategies in both the private and public sectors. It is inevitable that how design is managed in this shifting context will also change.

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.

Microsoft’s success represented an aesthetic flaw in the way the universe worked. “The only problem with Microsoft is they just have no taste, they have absolutely no taste,” he later said. “I don’t mean that in a small way. I mean that in a big way, in the sense that they don’t think of original ideas and they don’t bring much culture into their product.”116 The primary reason for Microsoft’s success was that it was willing and eager to license its operating system to any hardware maker. Apple, by contrast, opted for an integrated approach. Its hardware came only with its software and vice versa. Jobs was an artist, a perfectionist, and thus a control freak who wanted to be in charge of the user experience from beginning to end. Apple’s approach led to more beautiful products, a higher profit margin, and a more sublime user experience. Microsoft’s approach led to a wider choice of hardware.

Rather, productivity is about making certain choices in certain ways. The way we choose to see ourselves and frame daily decisions; the stories we tell ourselves, and the easy goals we ignore; the sense of community we build among teammates; the creative cultures we establish as leaders: These are the things that separate the merely busy from the genuinely productive. We now exist in a world where we can communicate with coworkers at any hour, access vital documents over smartphones, learn any fact within seconds, and have almost any product delivered to our doorstep within twenty-four hours. Companies can design gadgets in California, collect orders from customers in Barcelona, email blueprints to Shenzhen, and track deliveries from anywhere on earth. Parents can auto-sync the family’s schedules, pay bills online while lying in bed, and locate the kids’ phones one minute after curfew. We are living through an economic and social revolution that is as profound, in many ways, as the agrarian and industrial revolutions of previous eras. These advances in communications and technology are supposed to make our lives easier. Instead, they often seem to fill our days with more work and stress. In part, that’s because we’ve been paying attention to the wrong innovations. We’ve been staring at the tools of productivity—the gadgets and apps and complicated filing systems for keeping track of various to-do lists—rather than the lessons those technologies are trying to teach us. There are some people, however, who have figured out how to master this changing world. There are some companies that have discovered how to find advantages amid these rapid shifts. We now know how productivity really functions. We know which choices matter most and bring success within closer reach. We know how to set goals that make the audacious achievable; how to reframe situations so that instead of seeing problems, we notice hidden opportunities; how to open our minds to new, creative connections; and how to learn faster by slowing down the data that is speeding past us.

Silicon Valley mythology holds that Minitel failed because it was too dirigiste, too state-directed. As Julien Mailland points outs, however, both Minitel and the internet were the products of different quantities of state investment, private capital, and thriving cultures of amateur enthusiasts and experts improving the technology and proselytizing for it. Both Mintel and the internet show that there is no 'free market' without substantial pubic-sector intervention and backing. The internet's history also shows us that when we rely on the private sector and its hallowed bromide of 'innovation,' quite often that will result in technical innovations that are designed for manipulation, surveillance and exploitation. The tax-evading, offshore wealth-hoarding, data-monopolizing, privacy-invading silicon giants benefit from the internet's 'free market' mythology, but the brief flourishing of Minitel shows is that other ways, other worlds, other platforms, are possible. The question is, given that there's no way to reverse history, how can we actualize these possibilities? What sort of power do we have? As users, it turns out, very little. We are not voters on the platforms; we are not even customers. We are the unpaid products of raw material. We could, if we were organized, withdraw our labor power, commit social media suicide: but then what other platforms do we have access to with anything like the same reach?

Launching “Buy It Now” was a large change that touched every transaction, but the eBay team also innovated across the experience for both sellers and buyers as well. With an initial success, we doubled down on innovation to drive growth. We introduced stores on eBay, which dramatically increased the amount of product offered for sale on the platform. We expanded the menu of optional features that sellers could purchase to better highlight their listings on the site. We improved the post-transaction experience on ebay.com by significantly improving the “checkout” flow, including the eventual seamless integration of PayPal on the eBay site. Each of these innovations supported the growth of the business and helped to keep that gravity at bay. Years later, Jeff became a general partner at Andreessen Horowitz, where he would kick off the firm’s success in startups with network effects, investing in Airbnb, Instacart, Pinterest, and others. I’m lucky to work with him! He recounted in an essay on the a16z blog that his strategy was to grow eBay by adding layers and layers of new revenue—like “adding layers to the cake.” You can see it visually here: Figure 12: eBay’s growth layer cake As the core US business began to look more like a line than a hockey stick, international and payments were layered on top. Together, the aggregate business started to look like a hockey stick, but underneath it was actually many new lines of business.

values of commons-based sharing and of private enterprise often conflict, most notably over the extent to which innovations should be patent-protected. The commons crowd had its roots in the hacker ethic that emanated from the MIT Tech Model Railroad Club and the Homebrew Computer Club. Steve Wozniak was an exemplar. He went to Homebrew meetings to show off the computer circuit he built, and he handed out freely the schematics so that others could use and improve it. But his neighborhood pal Steve Jobs, who began accompanying him to the meetings, convinced him that they should quit sharing the invention and instead build and sell it. Thus Apple was born, and for the subsequent forty years it has been at the forefront of aggressively patenting and profiting from its innovations. The instincts of both Steves were useful in creating the digital age. Innovation is most vibrant in the realms where open-source systems compete with proprietary ones. Sometimes people advocate one of these modes of production over the others based on ideological sentiments. They prefer a greater government role, or exalt private enterprise, or romanticize peer sharing. In the 2012 election, President Barack Obama stirred up controversy by saying to people who owned businesses, “You didn’t build that.” His critics saw it as a denigration of the role of private enterprise. Obama’s point was that any business benefits from government and peer-based community support: “If you were successful, somebody along the line gave you some help.

Most obviously, they agreed, an autocatalytic set was a web of transformations among molecules in precisely the same way that an economy is a web of transformations among goods and services. In a very real sense, in fact, an autocatalytic set was an economy—a submicroscopic economy that extracted raw materials (the primordial “food” molecules) and converted them into useful products (more molecules in the set). Moreover, an autocatalytic set can bootstrap its own evolution in precisely the same way that an economy can, by growing more and more complex over time. This was a point that fascinated Kauffman. If innovations result from new combinations of old technologies, then the number of possible innovations would go up very rapidly as more and more technologies became available. In fact, he argued, once you get beyond a certain threshold of complexity you can expect a kind of phase transition analogous to the ones he had found in his autocatalytic sets. Below that level of complexity you would find countries dependent upon just a few major industries, and their economies would tend to be fragile and stagnant. In that case, it wouldn’t matter how much investment got poured into the country. “If all you do is produce bananas, nothing will happen except that you produce more bananas.” But if a country ever managed to diversify and increase its complexity above the critical point, then you would expect it to undergo an explosive increase in growth and innovation—what some economists have called an “economic takeoff.

Letter to the tech giants: When fame and abundance kiss somebody’s feet before that person is wise enough, he or she is very likely to lose track of what’s necessity and what’s luxury. And modern society is filled with examples of such intelligent stupidity – stupidity that is carried out by apparently smart humans. Because being smart is not the same as being wise. The world has enough smartness, but not enough wisdom to bring that smartness into proper productive practice – and I mean productive practice not sophisticated practice – there is a difference. A person smart enough to visualize a Falcon rocket engine can easily pinpoint the locations of various organizations that spread terrorism, yet the person chooses to explore the space further instead of prioritizing the technological advantages to first fix real issues of the human society that inflict harm to the humans every walk of the way. The world is a miserable place not because we have lack of resources, but because those who have an abundance of resources do not have the slightest idea of true human need. The resources needed for colonizing Mars if put to proper practice can fix the world’s global warming issues – it can fix the world’s climate change issues – it can fix the world’s terrorism issues, yet people are more interested in the pompous idea of living in Mars for whatever reason, instead of paying attention to improving human condition on earth. I am not against technological advancement, for I am a scientist, but my soul aches when I see smart people are dumb enough to chase after illusory glory of doing something different and innovative instead of focusing the powers of their soul on cleaning up the misery business on earth. You can, yet you don’t. Why? Smartness without wisdom is stupidity. You are smart – yes indeed – but I am sorry – you are stupid at the same time. How can you dream of having a cheese burger on Mars when your own kind on Earth is suffering! How can you think of taking rich kids into the orbit just so they can admire the beauty of earth from the heavens, when that very earth is infested with the primordial evils of human character! Awaken the human within you my friend, and pay attention. Awaken the human within and let it consume all the miseries from the world that you live in. Say a member of your family falls ill, would you ignore his or her misery completely just because you want to make life more comfortable for others than it already is, or would you first try everything in your capacity in order to heal your loved one! Be wise my friend, for it is not enough to be smart. You are smart – there is no doubt about that – so utilize that smartness for humanity and heal your own kind. Heal your kind with your capacity my friend. It is wailing for healers – not some delusional faith healers, but real tangible healers. Would you not do anything! Would you not give your soul to fix the broken soul of this world! Arise my friend, Awake my friend and work for humanity, not to make it sophisticated, but to make it peaceful first. Remember, humanity first, then everything else. Peace first, sophistication later. Harmony first, luxury later.

Performance measure. Throughout this book, the term performance measure refers to an indicator used by management to measure, report, and improve performance. Performance measures are classed as key result indicators, result indicators, performance indicators, or key performance indicators. Critical success factors (CSFs). CSFs are the list of issues or aspects of organizational performance that determine ongoing health, vitality, and wellbeing. Normally there are between five and eight CSFs in any organization. Success factors. A list of 30 or so issues or aspects of organizational performance that management knows are important in order to perform well in any given sector/ industry. Some of these success factors are much more important; these are known as critical success factors. Balanced scorecard. A term first introduced by Kaplan and Norton describing how you need to measure performance in a more holistic way. You need to see an organization’s performance in a number of different perspectives. For the purposes of this book, there are six perspectives in a balanced scorecard (see Exhibit 1.7). Oracles and young guns. In an organization, oracles are those gray-haired individuals who have seen it all before. They are often considered to be slow, ponderous, and, quite frankly, a nuisance by the new management. Often they are retired early or made redundant only to be rehired as contractors at twice their previous salary when management realizes they have lost too much institutional knowledge. Their considered pace is often a reflection that they can see that an exercise is futile because it has failed twice before. The young guns are fearless and precocious leaders of the future who are not afraid to go where angels fear to tread. These staff members have not yet achieved management positions. The mixing of the oracles and young guns during a KPI project benefits both parties and the organization. The young guns learn much and the oracles rediscover their energy being around these live wires. Empowerment. For the purposes of this book, empowerment is an outcome of a process that matches competencies, skills, and motivations with the required level of autonomy and responsibility in the workplace. Senior management team (SMT). The team comprised of the CEO and all direct reports. Better practice. The efficient and effective way management and staff undertake business activities in all key processes: leadership, planning, customers, suppliers, community relations, production and supply of products and services, employee wellbeing, and so forth. Best practice. A commonly misused term, especially because what is best practice for one organization may not be best practice for another, albeit they are in the same sector. Best practice is where better practices, when effectively linked together, lead to sustainable world-class outcomes in quality, customer service, flexibility, timeliness, innovation, cost, and competitiveness. Best-practice organizations commonly use the latest time-saving technologies, always focus on the 80/20, are members of quality management and continuous improvement professional bodies, and utilize benchmarking. Exhibit 1.10 shows the contents of the toolkit used by best-practice organizations to achieve world-class performance. EXHIBIT 1.10 Best-Practice Toolkit Benchmarking. An ongoing, systematic process to search for international better practices, compare against them, and then introduce them, modified where necessary, into your organization. Benchmarking may be focused on products, services, business practices, and processes of recognized leading organizations.

Yet the deepest and most enduring forms of cultural change nearly always occurs from the “top down.” In other words, the work of world-making and world-changing are, by and large, the work of elites: gatekeepers who provide creative direction and management within spheres of social life. Even where the impetus for change draws from popular agitation, it does not gain traction until it is embraced and propagated by elites. The reason for this, as I have said, is that culture is about how societies define reality—what is good, bad, right, wrong, real, unreal, important, unimportant, and so on. This capacity is not evenly distributed in a society, but is concentrated in certain institutions and among certain leadership groups who have a lopsided access to the means of cultural production. These elites operate in well-developed networks and powerful institutions. Over time, cultural innovation is translated and diffused. Deep-rooted cultural change tends to begin with those whose work is most conceptual and invisible and it moves through to those whose work is most concrete and visible. In a very crude formulation, the process begins with theorists who generate ideas and knowledge; moves to researchers who explore, revise, expand, and validate ideas; moves on to teachers and educators who pass those ideas on to others, then passes on to popularizers who simplify ideas and practitioners who apply those ideas. All of this, of course, transpires through networks and structures of cultural production. Cultural change is most enduring when it penetrates the structure of our imagination, frameworks of knowledge and discussion, the perception of everyday reality. This rarely if ever happens through grassroots political mobilization though grassroots mobilization can be a manifestation of deeper cultural transformation.

MT: Mimetic desire can only produce evil? RG: No, it can become bad if it stirs up rivalries but it isn't bad in itself, in fact it's very good, and, fortunately, people can no more give it up than they can give up food or sleep. It is to imitation that we owe not only our traditions, without which we would be helpless, but also, paradoxically, all the innovations about which so much is made today. Modern technology and science show this admirably. Study the history of the world economy and you'll see that since the nineteenth century all the countries that, at a given moment, seemed destined never to play anything but a subordinate role, for lack of “creativity,” because of their imitative or, as Montaigne would have said, their “apish” nature, always turned out later on to be more creative than their models. It began with Germany, which, in the nineteenth century, was thought to be at most capable of imitating the English, and this at the precise moment it surpassed them. It continued with the Americans in whom, for a long time, the Europeans saw mediocre gadget-makers who weren't theoretical or cerebral enough to take on a world leadership role. And it happened once more with the Japanese who, after World War II, were still seen as pathetic imitators of Western superiority. It's starting up again, it seems, with Korea, and soon, perhaps, it'll be the Chinese. All of these consecutive mistakes about the creative potential of imitation cannot be due to chance. To make an effective imitator, you have to openly admire the model you're imitating, you have to acknowledge your imitation. You have to explicitly recognize the superiority of those who succeed better than you and set about learning from them. If a businessman sees his competitor making money while he's losing money, he doesn't have time to reinvent his whole production process. He imitates his more fortunate rivals. In business, imitation remains possible today because mimetic vanity is less involved than in the arts, in literature, and in philosophy. In the most spiritual domains, the modern world rejects imitation in favor of originality at all costs. You should never say what others are saying, never paint what others are painting, never think what others are thinking, and so on. Since this is absolutely impossible, there soon emerges a negative imitation that sterilizes everything. Mimetic rivalry cannot flare up without becoming destructive in a great many ways. We can see it today in the so-called soft sciences (which fully deserve the name). More and more often they're obliged to turn their coats inside out and, with great fanfare, announce some new “epistemological rupture” that is supposed to revolutionize the field from top to bottom. This rage for originality has produced a few rare masterpieces and quite a few rather bizarre things in the style of Jacques Lacan's Écrits. Just a few years ago the mimetic escalation had become so insane that it drove everyone to make himself more incomprehensible than his peers. In American universities the imitation of those models has since produced some pretty comical results. But today that lemon has been squeezed completely dry. The principle of originality at all costs leads to paralysis. The more we celebrate “creative and enriching” innovations, the fewer of them there are. So-called postmodernism is even more sterile than modernism, and, as its name suggests, also totally dependent on it. For two thousand years the arts have been imitative, and it's only in the nineteenth and twentieth centuries that people started refusing to be mimetic. Why? Because we're more mimetic than ever. Rivalry plays a role such that we strive vainly to exorcise imitation. MT

Isaac Asimov’s short story “The Fun They Had” describes a school of the future that uses advanced technology to revolutionize the educational experience, enhancing individualized learning and providing students with personalized instruction and robot teachers. Such science fiction has gone on to inspire very real innovation. In a 1984 Newsweek interview, Apple’s co-founder Steve Jobs predicted computers were going to be a bicycle for our minds, extending our capabilities, knowledge, and creativity, much the way a ten-speed amplifies our physical abilities. For decades, we have been fascinated by the idea that we can use computers to help educate people. What connects these science fiction narratives is that they all imagined computers might eventually emulate what we view as intelligence. Real-life researchers have been working for more than sixty years to make this AI vision a reality. In 1962, the checkers master Robert Nealey played the game against an IBM 7094 computer, and the computer beat him. A few years prior, in 1957, the psychologist Frank Rosenblatt created Perceptron, the first artificial neural network, a computer simulation of a collection of neurons and synapses trained to perform certain tasks. In the decades following such innovations in early AI, we had the computation power to tackle systems only as complex as the brain of an earthworm or insect. We also had limited techniques and data to train these networks. The technology has come a long way in the ensuing decades, driving some of the most common products and apps today, from the recommendation engines on movie streaming services to voice-controlled personal assistants such as Siri and Alexa. AI has gotten so good at mimicking human behavior that oftentimes we cannot distinguish between human and machine responses. Meanwhile, not only has the computation power developed enough to tackle systems approaching the complexity of the human brain, but there have been significant breakthroughs in structuring and training these neural networks.

Success comes with an inevitable problem: market saturation. New products initially grow just by adding more customers—to grow a network, add more nodes. Eventually this stops working because nearly everyone in the target market has joined the network, and there are not enough potential customers left. From here, the focus has to shift from adding new customers to layering on more services and revenue opportunities with existing ones. eBay had this problem in its early years, and had to figure its way out. My colleague at a16z, Jeff Jordan, experienced this himself, and would often write and speak about his first month as the general manager of eBay’s US business. It was in 2000, and for the first time ever, eBay’s US business failed to grow on a month-over-month basis. This was critical for eBay because nearly all the revenue and profit for the company came from the US unit—without growth in the United States, the entire business would stagnate. Something had to be done quickly. It’s tempting to just optimize the core business. After all, increasing a big revenue base even a little bit often looks more appealing than starting at zero. Bolder bets are risky. Yet because of the dynamics of market saturation, a product’s growth tends to slow down and not speed up. There’s no way around maintaining a high growth rate besides continuing to innovate. Jeff shared what the team did to find the next phase of growth for the company: eBay.com at the time enabled the community to buy and sell solely through online auctions. But auctions intimidated many prospective users who expressed preference for the ease and simplicity of fixed price formats. Interestingly, our research suggested that our online auction users were biased towards men, who relished the competitive aspect of the auction. So the first major innovation we pursued was to implement the (revolutionary!) concept of offering items for a fixed price on ebay.com, which we termed “buy-it-now.” Buy-it-now was surprisingly controversial to many in both the eBay community and in eBay headquarters. But we swallowed hard, took the risk and launched the feature . . . and it paid off big. These days, the buy-it-now format represents over $40 billion of annual Gross Merchandise Volume for eBay, 62% of their total.65