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Archive for April, 2012

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Google launching Drive is a testament to the envy of behemoths in those who have a specialized skillset that is unbeatable. It is indicative of the rise of the Jobsian guiding principle of specialization. Doing one thing and doing it better than anyone else, to innovate in ways never before seen.

Dropbox, a company founded on that philosophy, was the impetus for Google’s late to the game Drive…and it’s runaway success is why Google is doing what it does better than anyone else..placing it in its crosshairs by dropping the hammer with a pricing model that is half the cost, attempting to place a chokehold on Dropbox the true innovator. (Sssh. Remember, Google is committed to never being evil.)

If true innovation, driven by agility, passion and a thirst to delight consumers is continued to be killed by the big tech sharks searching for chum in the water (as we saw with the ridiculous 1 billion dollar Facebook swallow up of Instagram) can we really believe in a brighter and better America that thrives on creativity and true innovation?

Values remain in question as the imagination economy ensues and continues to catalyze the new world’s reset. How values are preserved and rewarded will be very telling to our future economy and place on the global economic stage.

Valuation too will also factor into this equation. 1 billion for a 15 person start up brews more fear than excitement over the prosperity that will come from the pending Facebook IPO…as with a loss of values and valuation the “next Apple” could easily become a very different company beginning with an “A” once destined to rule the world…. got mail anyone? “Case” in point.

The Industrial Internet and the Imagination Economy

Like the Industrial Revolution, the Industrial Internet is a pipeline of business innovation and knowledge transfer that has, and will continue, to fuel political, economic and societal changes. And like the Industrial Revolution did, the Industrial Internet will continually shape the fabric of our society by influencing the way we live, work and grow.

Some may have not heard of or perhaps even recognized the Industrial Internet’s quiet arrival, but make no mistake – it is here. The Industrial Internet is transforming business on a daily basis and is influencing strategic direction. IBM has been one of the household brand names jumping headfirst into the possibilities of the Industrial Internet. In fact, they have over 2,000 projects under their “Smarter Planet” umbrella. One IBM initiative, as outlined by the New York Times, is in Dubuque, Iowa where I.B.M. “has embarked on a long-term program with the local government to use sensors, software and Internet computing to improve the city’s use of water, electricity and transportation… The savings in the pilot, nearly 7 percent, would translate into curbing water use by 65 million gallons a year.”

While the implications and definitions as they relate to business are wide-ranging, one of the most intriguing concepts that the Industrial Internet has created is the consumer-focused concept of crowd funding. Crowd funding – which is facilitating the imagination economy that uses ideas as the new currency – allows any business or project to ask the Internet community at large for money to start or finish a business or project.

One of the most popular sites, Kickstarter, has recently received significant media attention for a number of items including the Elevation iPhone Deck project raising more than $1 million in one day. That was followed up by independent video game studio Double Fine Productions, beating its goal of $400, 000 in only eight hours on its way to eventually raising $3.3 million.

The crowd funding phenomenon is compelling because it is taking the concept of the Industrial Internet – which, by and large, has been associated with traditional companies – and is expanding it to give individuals the power to decide which industries and products are worth building. Essentially, this iteration of the Industrial Internet is making consumers the bank, which means they are fueling the economy through their own capital. Not only is it making the consumers the bank, but it is empowering consumers to fund products and projects they would, in turn, purchase. Therefore, it is a unique insight into what the populace is demanding of its evolving economy.

As a proof point to Allison+Partners’ ideation of an emerging world of creativity and innovation, the crowd funding community is demanding imagination-driven products – books, music, movies, video games – that likely would not live, otherwise. Perhaps, just as important, it is creating jobs and advancing the economy like the Industrial Revolution did prior; it’s just an economy powered by astounding creativity, endless reach and the fruit of collaboration.

 

And the Winners in TEM Are…

In a fairly depressed, yet eagerly optimistic economy, there are companies that have evaded the effects of the recession and triumphed above all. Why do such companies and inevitably their products, resonate with consumers? Why do consumers wait on-line for days on end or spend ridiculous amounts of money on fleeting items? The clear leaders all have one major characteristic in common – they foster an undeniably exceptional experience.

But one can always argue that all brands create an experience – it’s inherent in their marketing DNA. True, however, like most things in life, some do it better than others. There are four companies that have emerged as dominant experience-generating forces: Nike, Beats by Dr. Dre, Apple, and Target. The following outlines how these brands have capitalized in re-imagining and transforming products to deliver total experience management.

NIKE: The Nike Kool-aid has been ingested for years and even in this down economy, they have not lost their luster. Shoe enthusiasts across the globe park outside of stores for days in order to buy the latest Air Force Ones. In the 90s, Nike gained an unexpected audience in hip-hop artists, DJs, etc., who were wearing the shoes for style purposes. Now, Nike has evolved into a shoemaker that not only optimizes consumers’ performance, but maintains the distinctive style factor. Nike makes consumers feel empowered by their decision to buy a shoe that looks good and performs well.

BEATS BY DR. DRE: When did headphones become all the rage? Ever since Dr. Dre unleashed his chic and lavish $300 cans. There has been a tectonic shift in the sound accessory market. No longer are headphones a ubiquitous utility. Dr. Dre has flipped the industry around and turned them into fashion lust. It’s not just a conduit for music, these headphones have become an integral part of consumers lives.

APPLE: Steve Jobs’ vision was simple – get back to the basics and design products that fit the human body, its movements, and its cognitive abilities – in other words, build, market and distribute ergonomic products. With that in mind, in the Jobsian Era, Apple combined art and commerce (picture the iconic dark silhouetted characters against bright-colored backgrounds dancing) to launch a radical product – the iPod – and consequently an unparalleled experience. The best and most honest way to describe Apple’s superhuman abilities is to quote their iconic “Think Different” ad: “Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes… You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world are the ones who do.” And that is what Apple has done and continues to do – change the world.

TARGET: As Target states: “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.® brand promise.” Target thoughtfully designs stores to be easy and intuitive to shop, they also partner with high-end designers to create select product lines that have limited availability. The company has singlehandedly democratized high fashion and design by offering exclusive and otherwise unattainable brands names to the mass market.

As previously stated, these aforementioned brands are brilliant experience developers – producing models that reimagine innovation, defy user experience and boost brand awareness. They relentlessly strive to change and move humanity further along. Nike, Beats by Dr. Dre, Apple, and Target are some in an elite group that have revolutionized the idea of invention and total experience management.