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Category Archives: Innovation

One Delightful Thing

21 Tuesday Jul 2015

Posted by Jim Lucas in Branding, Concentrating effort, Customer Experience, Customers, Innovation, Retail

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Customer Experience, customer satisfaction, Innovation

NewHorizonsPlutoCharon-1-582x753
Around 500 BC a Greek philosopher named Heraclitus said, “Everything changes and nothing stands still.” Today, we are more likely to hear, “The only constant is change,” and feel like it’s a new idea. The truth is that change has always been, and always will be, regardless when we discover it.

When Henry Ford introduced the automobile he was amused by the idea that people really only wanted faster horses. When your grandmother drank coffee she was, at most, looking for cream and sugar not Butterbeer Frappuccinos from the Starbucks Secret Menu. When the Wright Brothers invented flight they didn’t quite imagine the International Space Station.

Recently, I attended Raylon’s 14th annual Art of Business symposium where I caught Josh Hafetz’ talk. Josh is the 3rd generation President of Raylon Corporation and he made a compelling argument. Like hair that is always growing, salon owners and managers must constantly grow, adapt, and remain relevant. Josh cited several very real examples of changes that are happening—right now—and why many of these changes cause salon professional product sales to remain flat, put pressure on salon service pricing, result in fewer appointments per year, and impact the loyalty of our clients to our salons.

After following Josh on a visual tour of the new ways our clients obtain information on beauty and style (social media, YouTube beauty tutorials, and mass-customization of consumer beauty products) another time-tested truism came to mind.

Consumer expectations are always growing.

The Kano Model (Google it) is a trendy way to understand changing consumer expectations but it too is based on an age-old truth. In a nutshell, what Kano says is this. There are three kinds of things consumers want at all times from any business:

  • Basic things: For example, A salon that is open, furnished, clean, with plenty of parking.
  • Expected things: Great haircuts, artistic hair color, and nice blowouts.
  • Delightful things: Complimentary finishing touches, outrageously good consultations, luxurious washbowl experiences, etc.

Kano also points out that, over time, things that were once “delightful” eventually become “expected,” and ultimately “basic.” This creates one of two situations for every salon owner and manager A) tomorrow we invent something new and delightful, or B) we stop inventing and start going stale.

This presents each of us with a bold and never-ending challenge: Change or go stale. Innovate or die!

I encourage you to sit down tonight, with at least one other person on your team, and list out all the products, services, and experiences your salon provides. Sort your list into Basic, Expected, and Delightful. Then look at your list and push one thing from Expected into Basic. Push one Delightful into Expected.

And then invent one new Delightful thing

Erector 2.0

16 Tuesday Jul 2013

Posted by Jim Lucas in Innovation

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Erector, Northern California Consultants, Play-i, small business, start up, Wired

Erector

Remember the erector set? A masterpiece working model of structural metal with pulleys, gears, wheels, and electric motors. A.C. Gilbert invented Erector in 1913 as a way for young men to learn about buildings and working with motors. An educational toy that was perfectly timed at a point when many of our most necessary and innovative technologies were mechanical in nature. At home, boys were using Erector to create buildings, bridges, cranes, and conveyors. In 1949 an Erector was used in the Yale School of Medicine to build a functioning prototype of the artificial heart.

As popular as Erector was, imagine what might have been if virtually every family in America had one. How much more innovation and progress might there have been in a 20th century already marked by incredible breakthroughs? What if it had appealed to girls as well as boys? What if it seemed relevant to almost everyone and owning one was a social expectation?

We have something like that today. Chances are you used it a moment ago. It’s your smartphone.

With smartphones we’ve gone from making calls, to reading email, to using applications, and making video calls. What’s about to happen is using cell phones as programming devices. That’s right, get ready to start programming with your cell phone. Two things caught my eye this week. First, Wired Magazine’s article on the Internet of Things and a little start up in Silicon Valley called Play-i. Check out the Wired article to understand how you’ll be programming your air conditioner to engage 30 minutes before you arrive home and how to feed weather information into your lawn sprinkler system to optimize water usage.

See the Play-i blog to learn their innovative plans to teach your five-year-old to program using a robot and a smartphone.

The pace of technological change we’ve experienced in the last 20-30 years has been amazing and it’s been fueled by a miniscule fraction of the population knowing how to code. Try to get your head around the pace we’ll experience in a world where most people program. Let’s hope one of these five-year-olds creates apps to manage that.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Habit Formation

19 Wednesday Jun 2013

Posted by Jim Lucas in Customers, Innovation

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Entrepreneur, Habits, Innovation, Nir Eyal, start up

Nir Eyal, Habits, Innovation

In June 2013 I attended a seminar by Nir Eyal a noted author, speaker, and consultant. His thinking around, “Business models that require habits can use a pattern intended to help them form better product hypotheses and increase odds of success,” is important to share. Here is a link to the author of Hooked.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

30 Seconds on Lucavìa Consulting

15 Saturday Jun 2013

Posted by Jim Lucas in Branding, Customer Experience, Effectiveness, Innovation, Management, Shared values

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Bay Area consultants, Entrepreneur, management, Northern California Consultants, small business, start up

Lucavia Business Front

I believe entrepreneurs need partners to help them turn their creations into businesses.

While entrepreneurs focus on their creations, I bring focus to their businesses by:

  • Defining their organizations
  • Planning their success
  • Creating effective teams
  • Understanding and Engaging their customers.

The entrepreneur needs to accomplish five very big things:

  • Create shared values and purpose
  • Create direct business results
  • Multiply their impact by working through others
  • Innovate
  • Build and develop tomorrow’s talent.

I would like to start our relationship working on your Branding Framework. It is the foundation for:

  • Shared vision within the organization
  • Concentrating effort on results
  • Consistent branding across all media
  • Iteration and improvement.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Can Innovation Be Scheduled?

15 Saturday Jun 2013

Posted by Jim Lucas in Innovation

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Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California, retail, salon, small business, smb, start up

innovations

In my post about entrepreneurs, I mentioned how they don’t just create something better they create something different. Creating something new and different is innovation. Many might think that most innovations come from a spark of insight or a flash of brilliance (which no doubt they do—as well as repurposed mistakes). But, what we may not understand is that you, I, and entire companies can approach innovation systematically.

  • The first requirement is that people be measured and rewarded to encourage them to value change—not resist it.
  • Second, management must understand how much innovation will be required to sustain the business over a given period—as well as how many of their current products/services will be obsoleted in the same timeframe.
  • Next, a systematic evaluation of the changes in trends, customers, and the environment must be undertaken.
  • At the same time it is imperative that company’s performance as an innovator be measured and that rewards, relationships, job assignments, structural changes, etc. be adjusted accordingly.
  • Innovations should lead to customers being better served or allow them to do something they were previously unable to do.

More important than this abbreviated list for creating systematic innovation is the fact that once an idea is identified, people need to go to work. The old adage that (art, genius, success) is 10% inspiration and 90% perspiration certainly applies.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Reverse Showrooming

14 Friday Jun 2013

Posted by Jim Lucas in Customers, Innovation

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Bay Area consultants, consulting, knowledge worker, management, small business, smb, start up

myrunway-logo-icon

There are endless communities of people who gather on line and in person to exchange ideas and socialize. One of the most popular ways to participate in these communities is through meetup.com. I recently attended a meetup held in Palo Alto at SAP, hosted by First Thursday Silicon Valley Marketing Professionals. In my experience, nowadays the word “marketing” usually refers to ways of using the Internet to get customers to engage with brands—in other words, promotion and sales. Be that as it may, and completely by surprise, I learned about an intriguing new SAP social app called My Runway that evening. Rather than a product review, I’m taking a look at SAP’s My Runway from the point of view of innovation.

In an earlier post, I discussed how entrepreneurs don’t innovate by just creating something better; they create something different. My Runway is hardly alone in the space serving up social fashion apps. Nonetheless, these apps are doing something very innovative, they’re turning the tables on the trend toward showrooming. I wouldn’t be surprised if you’ve showroomed at least once, that is, you went into a bricks-and-mortar business to see, touch, or try on a product that you ended up purchasing on line. My Runway turns this behavior upside down by letting its community follow, fav, and wishlist products from their favorite brands and direct them locally to where in-store purchases can be made at the moment.

By taking responsibility for their customers’ total experience SAP, well known for backend ERP software, gained a valuable insight. Had they concentrated solely on the past, SAP would never have looked at ways to help their customers’ customers on the frontend. Instead, with My Runway, they not only help their customers build great products, they help them sell-through to an engaged online community.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

What Entrepreneurs Do

14 Friday Jun 2013

Posted by Jim Lucas in Innovation, Management

≈ 2 Comments

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Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California, retail, salon, small business, smb, start up

Containers

Most start up and small business people call themselves entrepreneurs. But how many understand the term and the power it unleashes?

In 1803 French economist, J. B. Say, coined the term entrepreneur, “The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.” In 1986 Peter Drucker formulated this theory. First, entrepreneurship sees change as normal and healthy. Second, it does something different than what is already being done. Notice it’s not just about doing something better but doing something different.

By this measure, entrepreneurs make up a minority of new businesses and those who are entrepreneurs understand what is expected of them: To create something different.

Popular culture expects this something to be a visible object, like an iPod, for example. But it can easily be argued the iPod is the direct descendant of Sony’s true innovation the “pocket-able radio.” What was really different about the iPod was iTunes—that’s what completely disrupted the music distribution business. Similarly, forgive us for thinking that Facebook created a breakthrough in the way people engage in relationships. In fact, what they’re doing is turning their users into the product they sell to their real customers: Advertisers.

Entrepreneurs often innovate in unseen ways. They standardize a product, systematize a process, redefine what the customer considers value, change a procedure, recombine things, improve the yield from resources, or change the way resources are used. One of my favorite innovations, cited by Drucker, was the establishment of the entrepreneurial bank by Crédit Mobilier. They were the first to use other people’s money to finance large projects rather than using their own.

So, if you’re starting a new company I hope you do well. If you’re an aspiring entrepreneur, you’d do well to understand what’s expected.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Two Lessons for Every Entrepreneur

14 Friday Jun 2013

Posted by Jim Lucas in Customers, Innovation, Management

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Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California, retail, salon, small business, smb, start up

Bassett Ears

In the 1700’s Edmund Burke said something you’ve heard many times, “Those who don’t know history are doomed to repeat it.” In my opinion, much of the business press exists to exploit the fact that we learn important lessons—and then quickly forget them. Much is known about management, entrepreneurism, innovation, etc. but we somehow forget in our pursuit of the latest meme or in our rush to be busy instead of creating results.

In the 1800’s J.B. Say defined the entrepreneur as “…Shifting economic resources out of an area of lower and into an area of higher productivity and greater yield.” Starting in 1939, over seven decades, Peter F. Drucker became the most influential management writer and thinker of all time as he codified the practice of management in over 30 books. And yet, we have an insatiable appetite for relearning what we already know.

In my local Sunday paper two articles caught my eye. One quoted Paul Santinelli of North Bridge Venture Partners. When asked the biggest mistake entrepreneurs make he answered, “…I was always enamored with what we were building…Had I listened to our VP of sales and realized, ‘Hey, the market doesn’t want X, they want Y and are willing to pay for it,’ I might have been able to move faster to a more acceptable solution.” In the other article, Curtis Carlson CEO of SRI, a company well known for sustained innovation, says he, “…Preaches, literally to every SRI employee [that]…each researcher must be able to explain the need s/he is trying to fill, why a new method would be better than what’s already available, and what benefit the new idea would bring to a potential customer.”

So, no matter where or when you learn it the two top lessons for entrepreneurs are:

  • Listen to your customers.
  • Discover what they need.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Perfect Pitch

13 Thursday Jun 2013

Posted by Jim Lucas in Innovation

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consulting, hotel, knowledge worker, management, Northern California, retail, small business, smb, start up

Tuning fork

I’ve been researching how modest startups in Silicon Valley pitch their ventures. It doesn’t take long to discover the ecosystem that supports entrepreneurs to speed pitch their ideas in group settings. Here are my early takeaways on effective presentations.

DURATION. You can literally pitch several times a week in the Valley. There is a wide range of event management styles so, depending on the event, you might only get 30 seconds when you were promised 1 or 2 minutes. Just be prepared.

NARRATIVE. Your story needs a beginning, middle, and end. Open strongly and finish with a flourish.

EMOTION. Make sure you coat your pitch with emotion even if 90% of your content is left-brained.

BUZZ AND HYPE. There’s a strong aversion to buzzwords and superlatives. Use plain language. Go here for more on this. If you just can’t help yourself, the jargon you do use better be correct and in the right context.

THEIR MONEY. Remember, an investor considers whether to move their money from somewhere and reallocate it to you. Never underestimate how interested they are in their money. Explain how you’ll be able to scale up to a business big enough they’ll care about.

WHAT/WHY/WHO. Clearly describe what your company does, why you’re doing it, and who you serve. Don’t get so wound up that your audience, while seeing your obvious passion, can’t figure out the problem you’re solving. If your product is new be sure to describe or demo how it works.

REPLACES/IMPROVES/COMPETITION. Describe what you’re replacing or improving. Even if your idea is easy to understand, use examples or anecdotes to create a clear picture. If your idea seems like a stretch—or if it’s old—expect to hear about it on the spot.

BUSINESS MODEL/SPECIAL. What makes you special/different/unique and how do you earn your money and manage your costs? In longer presentations, you’ll need to describe your finances to date and 3-5 years ahead.

$ OPPORTUNITY/SCALE. Know your total market size and the size of the segment you address. If you already have customers, talk about them. How will you acquire new customers and at what cost?

SITUATION/TEAM. Nothing you want to do is going to be easy. Who’s on your team and what’s in their track record to suggest you can make it happen? Where are you in your development cycle right now and what/when are your next few milestones?

THE ASK. Be clear about what you want. If it’s $1M, fine. If you’re just looking for a co-founder, make that clear too.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

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