BMGT 289B Midterm
Drawing parallels between Elon Musk and Steve Jobs is irresistible, but how do big thinkers like them come up with their innovative ideas and how can we reframe our thinking to do the same? Make sure you use the course readings, videos and lectures in addressing the question.
-Conviction -need to be able to imagine alt futures (possibilities) -need to have a high level of demonstration -courage to innovate - challenge status quo, take smart risks
What key points did Yannick Spierkel (Company Manager for Cirque du Soleil's Kurios. Kurios) make regarding how to encourage a creative work environment.
-Develop communications -Flexible hours -Cocktail hours and other social activities in the workplace -communicate -be trustworthy/ trusting -show consistency
Why do incumbent firms, especially market leaders, fail to innovate unrelentingly? Provide an example from the book (chapter 2) of a company that lost its maintain dominance.
-Incumbent firms fail to innovate unrelentingly due to the fear of self cannibalization (don't want to create a new product when current product is already successful) -Huge investment, high failure risk, uncertain returns: all count against innovation and encourage to stay with current product ex) Sony Walkman being replaced by Apple's iPod when they did not adopt MP3 tech
The main conclusions of the Startup Of you are?
-People are born entrepreneurs, and in order to be successful, you must have comp. advtg (combine assets, aspirations, and market realities) -Plan to adapt (evolve and invoke ABZ planning; build Plan A based on comp advtg, then adapt) -Take intelligent risks (short term risks increase long term stability) -build genuine relationships and use I^We -What you know is who you know -> tap into network intelligence -Pursue break out opportunities by remaining curious
What are the essential characteristics to be a good Cirque team member
-be a team player -be committed -be responsible -be passionate
What are the main implications the Startup Of You What consequences are likely to follow if you take the author's line of reasoning seriously
-expand your reach of network, gain a comp advtg, and land better professional opportunities by thinking entrepreneurially -learn best practices from Silicon Valley start-ups, and apply these strategies to your career -more world problems will be solved and solved faster if you practice these values
If you fail to take this line of reasoning seriously, the implications are..? (What consequences are likely to follow if people ignore the author's reasoning?)
-you will not be able to adapt to challenges in your personal life -a traditional career strategy has become ineffective considering the changes in the work force
What two factors were the undoing of the traditional career?
1. Globalization- tech works with globalization to increase offshoring, which causes more people to compete worldwide for jobs) 2. Technology- eliminates jobs that used to be high paying, changes the skills required for already existing jobs)
How is the Z plan different from the A & B Plan?
A and B Plan are your current ballpark. A is your current implementation of competitive advantage and B is what you pivot to change your goal. A/B are both desirable, but Z is a back- up plan/ lifeboat if you reach failure. Most impt: Z allows you to take on risks and uncertainty of A and B.
What are the three things that clearly define Steve jobs, according to the author. (Chapter 1)
Abandoned, chosen, special
What was Apple's design mantra?
Apple's design mantra is "simplicity is the ultimate sophistication," which asserts the idea that the simpler and more easy to use a product is, the better it is (and more appealing that product is to consumers)
What are the 3 pieces that comprise your competitive advantage in the market place?
Assets: what you have rn (soft assets = intangibles like knowledge, skills, etc) (hard assets = tangible like money, computer, house) Aspirations: wishes, ideas, goals of the future (may change) Market Realities: how valued and needed your skills are in a market --> you don't have an edge unless you meet/ exceed needs of a paying market
How Hershey used innovator's DNA skills:
Associating: Bringing together nutritious resources (peanut product) to underprivileged countries to improve the health of children and help solve hunger Questioning: How can we help this country and its people improve their farming techniques to help both us and them? What products can we make to help feed starving kids? Observing: saw that mothers would travel miles to bring child food and get care Experimenting: Created Vivi, a supplement that mothers could pick up a 2 week supply to feed their kids. wanted to see if they would gain weight which they did Networking: Working with Love Kitchens, Nourishing Minds, Stop Hunger Now, and other companies
How did his time at Atari influence Jobs?
Atari helped shape Jobs's approach to business and design by appreciating simple design. It made him a focused and very productive person. Through experiences w his boss, Jobs was inspired by the idea that you cannot take no for an answer if you want things done and he adopted this. (ex: the single player game of pong that Jobs convinced Woz to do in 4 days when Woz said it would take months. This also helped Jobs realize he was able to manipulate ppl and convince them to do almost anything)
What was the first product that Jobs and Wozniak created and tried to sell? Why was this experience so important?
Blue Box was Jobs and Woz's first product and it was a device that allowed an in band signaling mechanism that the user could trigger to switch to long distance calling. This was impt bc it helped Jobs and Woz realize that they could make and sell a product worth millions. Jobs thinks if they had not made the Blue Box, Apple would never have started bc it helped him realize his full potential
How did Jobs' calligraphy class influence him?
Calligraphy class made him realize the beauty of font styles and aesthetic design which he carried over to the typography and spacing design of Apple's products. It helped Jobs emphasize the importance of aesthetics in Apple's products, which the company later became known for
Explain the company culture and values of Cirque De Soleil assist in creating a competitive advantage for Cirque De Soleil
Cirque's mission: invoke, provoke, and evoke the imaginations of people around the world Values include: Reducing environmental impact Provide healthy safe workplace Making responsible choices in terms of partnerships and procurement Behaving like a responsible agent of change in communities
Finding out how Hershey uses social innovation
Created Hershey high school, which provided education to local kids and families of employees of Hershey; brings cocoa stability to Africa (teaches farmers better way to farm); Brings Vivi (peanut based supplement) in Africa
Exploring the development of the Hershey Community
Created chocolate factory, and hired people during depression so it never hit the town; created college and gave workers free tuition; Created Theater, which became a family event and brought the community together. Showed kids shows to make more $ bc that brought adults too. There were phone booths in theaters which was a huge convenience; people admired hershey bc
Define creative confidence and explain why it is important.
Creative Confidence is the belief in your own ability to change and innovate the world. It is the foundation of the belief that we are all important and it is significant because it asserts that people have greater thinking potential than they might expect -> encourages new ways of thinking
How is the definition of entrepreneurship offered by Hoffman & Casnocha different from the traditional definition?
Define entrepreneurship as not starting and creating companies (like traditional def), but being encoded in DNA, and that creation is the essence of entrepreneurship
How does one develop the multidimensional thinking demonstrated by Jobs and Musk?
Develop multidimensional thinking by "reaching across" technology, or using knowledge/ developments of one sector. A person must use their previous experiences and apply it to an issue or problem they are trying to solve in order to have multidimensional thinking
Explain two alternative theories for firm innovation and explain that theory that is advocated by the author, Gerald Tellis (THEORY 2)
Disruptive Technology Effect- Leading firms in a market invest in currently dominant technology even when its performance exceeds the needs of the mass market or majority of consumers. A new disruptive technology emerges that is superior to the dominant tech, yet new market tech appeals to only niche market and market leaders ignore it. Mass market doesnt want new tech bc it doesnt perform as well, but new tech continues to develop until it meets the needs of the mass market and is valued at better than previously dominant tech -> all incumbent leaders cling to dominant tech while new disruptive tech are introduced by new entrants to market
Yannick Spierkel discussed the multiple challenges that Cirque encounters: new city every 8 weeks; temporary employees; high turnover at all levels; and adapting to audience needs. Despite these significant challenges, Cirque is successful. Using the insights shared by Yannick and your personal experience at the show, explain how Cirque maintains long term success
Employees in show are very talented and able to participate in multiple roles in a show, the show is appealing to all ages -> it is not just a circus (also innovative bc it created a show w a music theme so it was universal), its employees form a community --> they enjoy working together, and have trust; hire mix of people so there is a sharing of ideas
What technologies at Xerox PARC amazed Jobs and his associates?
Graphical interface made possible by bitmapping screens, networking between computers, and object- oriented programming technology
What causes or hinders innovation? Use the model outlined in chapter one (Unrelenting Innovation) of the book to address this question.
Hinders innovation: aversion to risk, fear of cannibalizing a company's own successful products, too much focus on the present Causes innovation: Practices (continue relentless innovation, offer incentives for enterprise to empower product champions, foster an internal competition); Traits (a willing to cannibalize a firm's successful products, tolerance for risk, a focus on the future)
To illustrate the innovation framework (people, processes, and philosophies) the case study focused on IDEO, the widely admired and award-winning design and development firm. Apply the 3P framework to IDEO using the class discussion material (lecture/shopping cart video clip) and the Innovator's DNA readings
IDEO is very public and wants their philosophy to stand as an "innovating religion" to the world People: want T- shaped people (horizontal part= disposition to collab, vertical part = the qualities you have), diversity of fields, open mindedness, break down traditional hierarchy, maintain helpful culture (look for most accessible ppl) Processes: employing people from different majors/ fields is important in innovation, stress the imptc of observation (see what makes people grimace when using an item and fix that) Philosophy: 1. Innovation is everyone's job; 2. Disruptive innovation is a part of a company's process; 3. small project teams; 4. Take smart risks for innovation look for products that are viable, feasible, and desirable, hire people who will challenge the status quo, "fail often to succeed sooner"
How did Apple improve upon the technologies the company got from Xerox PARC?
Improved on Xerox PARC's graphical interface, created a better design of mouse technology while subsequently cutting the price of the mouse, and created more complex coding which allowed tabs to be overlapped and improved opening
How does Marty define innovation?
Innovation is unresearchable, unpredictable, terrifying, risky and untested
Most important info in Innovator's DNA is?
Innovative entrpreuners have creative intelligence -> use both sides of the brain when using 5 discovery skills (associating, questioning, observing, experimenting, networking)
According to Marty, how do innovator think?
Innovators think NOT like you (have diff ideas that ppl similar to you don't have)
How were Steve Jobs and Steve Wozniak similar? How were they different?
Jobs and Woz were similar bc both loved lasers/ practical jokers. difft bc Jobs cared about the design and aesthetics (ex: what the inside of the computer looked like). Jobs was a detailed perfectionist and Woz was not. Further, Jobs was more outgoing and loved attention, while Woz was reserved and did not like the spotlight
Why did Jobs care about how the inside of the Macintosh computer looked?
Jobs had a belief that every aspect of his products should be both beautiful and simplistic. (story with dad)
What did Steve learn from his father in regards to design?
Jobs learned from his father to focus on the design for every part of your product (inside and back included), he began to appreciate admirable craftsmanship. (story with the piece of furniture)
When Jobs recruited people to work on the Macintosh, what was his number one concern? In other words, what was he looking for in a person?
Jobs looked for a team with a common goal of working together to create a computer that was user- friendly. He looked for the brightest and most skilled people in every field and wanted people who were both critical thinkers and good leaders
Why did Jobs go to India? What does the trip enhance his creative potential?
Jobs went to India bc his friend Robert Friedland was urging him to go on a spiritual journey. He studied with a guru of the 60s hippie/ counterculture movement. The trip enhanced Jobs' creative potential because he could now see things from another country's point of view, experience different cultures, and adopt his zen lifestyle.
Who is Jonathan Ive? What has been his contribution to Apple?
Jonathan Ive is the head of industrial design at Apple. Contributions include the power of design thinking, which is what Apple does better than any other company. He constantly asks "why not like this?" and gives extreme detail to products. (ex: designing and manufacturing keyboards using an aluminum sheet)
What insights do Hoffman & Casnocha offer regarding pursuing your passion and how are their insights different from conventional advice regarding following your passion.
Need to fit together something you're good at (assets) and that you're passionate about (aspirations) to be something that someone will pay you more for (market realities)
According to Marty, where does innovation start?
No innovation is new, it evolves from something before it
Explain the difference between professional ties and weak ties/acquaintances
Professional Ties= people with the same access to same people + resources that you do -> you have a strong bond with these people -> small in number (these are the people you consult with, share ideas with, and promote his/ her brand) Weak Ties (acquaintances): people you spend low amounts of low intensity time with, but are still friendly with --> lose connections w these people (high school friends, ppl @ conferences) --> you can use these people as a bridge to other parts of an org.
Explain the concept of self-efficacy and guided mastery. How are these terms relevant to creativity?
Self- efficacy: The belief that individuals who come to believe they can affect change are the most likely to accomplish what they set out to do. People with self- efficacy set their sights higher, try harder and persevere longer. Guided mastery: a therapeutic method of assisting clients in raising their self- efficacy so they will attempt, and hopefully accomplish, progressively more difficult tasks -greater the self efficacy and guided mastery --> the more creative the person bc they will have the confidence to succeed
Explain the argument that the authors of the Innovator's DNA outline regarding how much of your creativity comes from learning/skill development vs. genetics. How does this compare with research on general intelligence (IQ)?
Some people are born with talent, yet others can learn, develop, and improve on creativity by practicing, also creativity is different from natural intelligence where it is a born gift
Why do some incumbents maintain their dominance while others fail? Provide an example from the book (chapter 3) of a company that was able to maintain its dominance.
Successful incumbents embrace risk and failure; commit to a source of uncertainty, patient in watching losses and accepting failure; do not have inflated sense of expectations (acknowledge success may not come immediately)
Why is innovation so critical to America's future?
Tech is making factories less relevant, lowering wages, and causing low wage jobs to go overseas -> innovation can create jobs, establish a global standing, provide econ growth, and social/ political/ econ vitality
Main points made by Zakaria in Time's "Innovate Better"? Conclusions in CNN Special "Restoring American Dream How To Innovate?"
The US is not putting enough money in to nurture industries, so countries like SKorea and China. Successful countries have industries funded by govt and govt policy, need to invest in education, infrastructure, manufacturing, and new growth in industries
What do Elon Musk and Steve Jobs have in common?
The power of design thinking and a strong conviction in their beliefs (passion)
Many large organizations (Kodak, Sony, Microsoft, etc) who were the leaders in their industry failed to adjust to the changing business environment resulting in new companies such as Google, Amazon, Facebook, and Apple to emerge as the industry leaders. What is the most important factor in driving innovation success and what practices can company put in place to encourage innovation? When addressing the question you need to demonstrate knowledge of the lecture material as well as the reading material including the company cases used.
These companies were too comfortable at the top, and failed to take risks to further their company's success. (Kodak owned digital photo info but did nothing with it bc didn't want to cannibalize own product) (Sony did something similar with the Walkman) (Gillette was comfortable with self cannibalizing bc it realized the future is what the company is working towards. Were not hung up on the success of their product bc they released a new one at the peak of a prior product's success which made the og obsolete) *The most important factor in driving innovation success is company culture
Explain two alternative theories for firm innovation and explain that theory that is advocated by the author, Gerald Tellis (THEORY 1)
Wall Street Curse- The reason firms aren't innovative is bc senior execs shore up the stock prices on wall street by meeting numbers (they do this to keep their jobs). 2 ways to burst earnings through short term measures: 1. managers can cut costs in admin, manufacturing, marketing, and R&D 2. managers can lay off employees both of the above lead to higher profits, earnings, and stock prices in short term, BUT reduce flow of future innovations in the long term
What useful insights and wisdom does Marty offer?
When 2 men in business agree, one is always irrelevant -> find someone who is diff with diff opinions
Do you consider Steve Jobs a Blue Ocean Strategist?
Yes, Steve Jobs is a Blue Ocean Strategist because he escaped the constant competition among tech companies and created his own market and demand through his products such as the Macintosh, the iPod, and the iPhone. He set a precedent in the tech industry that other companies sought to follow.
What consequences are likely to follow if you take Innovator's DNA seriously?
companies can find creative spark in employees, improvement and more confidence in creative thinking
A useful starting point to understand creativity is to review the work of Teresa Amabile who outlines the interrelationships among three things included _________.A more innovative environment is likely when __________ are present.
expertise and knowledge (technical, procedural, intellectual), creative thinking (skills, creative approach to problem solving), and motivation; play, passion, and purpose
Learning about Hershey's impoverished childhood, apprenticeships, early business failures and ultimate successes
grew up poor, had multiple failures (candy shop shut down bc he wasn't making $, wasn't able to sell caramels he made in the streets), saw hometown selling millions of dollars of caramel covered in chocolate, so decided to just sell chocolate -> created hershey
Main inferences/ conclusions of innovator's DNA is....
innovative thinking can be developed/ strengthened, practice discovery skills to improve, ask questions
The main purpose of the article, "The Innovator's DNA," is to
put entrepreneurs under the microscope, to examine when and how they came up with their businesses. Also,distinguish differences between entrepreneurs and entrepreneurs. Overall purpose is to gain info on HOW execs innovate, and what makes one person more creative than another (led to 5 Discovery Skills)