1. // ROAD TRIP
TO
INNO
VATION
HOW I CAME TO UNDERSTAND FUTURE THINKING
Delia Dumitrescu
POWERED BY TRENDONE
2. Road Trip to Innovation – How I came to
understand Future Thinking is an investigative
tale about a friendly and curious mind that
sets-off on a road trip to find out what inno-
vation is truly made of. Highlighting expert
interviews and companies that are heralded for
their know-how in the fields of future studies,
innovation and trend research, the book offers
an introduction to the theory and methodology
behind these complicated notions in easy and
refreshing language.
3. 08
ALL ON BOARD? What is innovation?
The future thinking mindset
Trends
The Diffusion Theory
the basics
34
WHERE DO IDEAS COME FROM? Weak Signals
Microtrends
Macrotrends
Megatrends
Consumer Insights
scanning
98
GOT THE TRENDS. WHAT NOW? Trend Consulting
Future Illustration
The Innovation Cockpit
Scenarios & Wild Cards
Design Thinking
ideation
178
HOW TO BUILD STRATEGIC FUTURES? Stepping into strategic stuff
Forecasting
Strategic Foresight
Strategic Planning
transformation
222
A NEW UNDERSTANDING OF INNOVATION? Watch Think Interpret Act
LaFutura
The Innovation Alliance
A new nature of innovation
the
f u t u r e n av i g at o r
246
ROAD TRIP PROPS The Trend and Future Dictionary
Acknowledgements
Sources
Index
About the author & TrendONE
f i n a l ly
4. 4
// WHAT CAN THIS BOOK DO?
Road Trip to Innovation – How I came to understand Future Thinking is a book
about understanding ways of approaching and building innovation. The
road trip itself is part of the narrative of the book as I travel from city to
city, interviewing people in order to find out, together with you dear reader,
the following: what does innovation encompass, how to spot trends, how
to use trends for creating innovative products, services and strategies, how
companies approach innovation in terms of method (e.g.: design thinking,
trend consulting) and how are trends transformed in a strategic asset inside
companies (e.g.: strategic foresight, strategic planning, forecasting).
The book will offer an introduction into the field of future studies and targets
to raise awareness of the innovation and trend research industry. It will explain
complicated notions in easy language and with a friendly approach. Road Trip
to Innovation – How I came to understand Future Thinking also has educational
purposes for students and trainees; it offers a holistic view on methods and
tools for building innovation to young managers setting up innovation strategy
in their companies and furthermore, it is a good introduction to the trends and
innovations industry for anybody who is interested in the topic.
My findings are based on literature review and data drawn from interviews and
case studies of companies in Europe and the United States. The interviews were
conducted with companies that encompass a broad spectrum of approaches and
with people of varied backgrounds, as I believe in the power of poly-social groups.
Why all these companies and why these people? There is no financial reason.
They were either found by natural research (a.k.a. appeared first in the
Google search engine) or recommended by Nils Müller, as he is the engine
behind this book, mentoring me and connecting me with people from the
industry. There is no advertising reason; they are just some examples out of
several interesting companies that are out there.
5. No.01 5
creative
idea
The Future Navigator that stands for all the contents of this book with
methods, tools and applications of the innovation process was created and
inserted in this book at the end. It started as a plain piece of paper with
No.02
two arrows that cross each other. It was gradually filled with the approaches
presented in this book in order to start a conversation regarding their
meaning and purpose. It can be looked at as a chess table. Anybody who has
additional information and strong motivations can modify it.
Road Trip to Innovation – How I came to understand Future Thinking is the
fruit of my thinking on all the aforementioned subjects: It is based on the
innovation
literature that I’ve read and the fascinating and intelligent people that I’ve
spoken with. As we are all different, special and unique persons, anyone
could write this book in their own way and interpret things according to
their own dimensions. This is a first published wave from the sea of opinions.
No.03
No.04 roadtrip to innovation
6.
7. all on board?
The Basics
What is innovation? 12
The future thinking mindset 16
Trends 22
The Diffusion Theory 29
Tensta Konsthall by frontdesign.se
8. 12 the basics
// WHAT IS INNOVATION?
[ĭn’ -vā’sh n]
e e
1 the introduction of something new;
2 a n e w i d e a , m e t h o d , o r d e v i c e : n ov e lt y.
Innovation is a change; it is “new stuff that is made useful” as Max McKeon
writes in his book The Truth About Innovation. Therefore, the innovation
process, in this book, refers to the journey one has to make in order to obtain
a new, cool, innovative idea and how to manage it. In a nutshell, it is about
how to get the idea and what you can do with it to make it valuable.
The Organization for Economic Cooperation and Development (OECD)
report on the New Nature of Innovation states that a new nature of innovation
is emerging. How? “Innovation is no longer mainly about science and
technology. Firms can innovate in other ways. Co-creation, user involvement,
environmental and societal challenges increasingly drive innovation today.
Collaborative, global networking and new public private partnerships are
becoming crucial elements in companies’ innovation process.”
In the early 1990s innovation equaled product development; this approach
was actually much too narrow. But the modern approach is also problematic
because the plasticity of this term turned the meaning of innovation into
a catch phrase.
Nowadays, everything that is providing value for a company is being
referred to as an innovation. For some companies it may be as simple as
gathering around for a pizza on a Friday night at the office in order to create
a better organizational climate thus internally providing a better basis for
innovation and creativity. As for others, it cannot be called innovation until
the brilliant idea that provides value is marketed – like creating an app that
tells you the ingredients of the pizza just by scanning the barcode of the box.
So, it all depends on how deep you go into the term of innovation, if just
about anything can be interpreted as an innovation. But it shouldn’t be this
way. In my opinion, the prior example dilutes its powers.
9. the basics
13
THE FIRST AIRPLANE
These days it seems that innovation as a noun has been thrown into so many
contexts that it has become hype. This makes it difficult for its meaning
to be securely locked in a box. For this reason, it becomes subjective and
highly interpretative. The good thing is the popularity of the word can
only do well to the world. Innovation turns out to be the source and, in the
same time, the target for more and more strategies. Martin Kruse, futurist
at the Copenhagen Institute for Future Studies (CIFS), states that “research
into innovation offers insights that can benefit everyone working with
organizational development, management, finance or product development.”
Defining what innovation means was giving me a hard time. Every answer
I got was competing in being more poetic than the one before. Here is one
particularly poetic definition coming from the Future Driven Innovation
paper from CIFS: “Shakespeare calls Man the ‘paragon of animals’ the ,
greatest work in the history of evolution. This is because we have a brain
with 100 billion cells and so the ability to change the world around us to
give ourselves a better chance of survival. We develop ourselves through
creative production, a process that, since the dawn of financial markets, has
been known as innovation.”
From the same source, here comes the practical definition: “Innovation has
historically been regarded as inventing a new product, producing it and putting it
on the market. It is the result of a creative process with emphasis on value creation.
Today, innovation can happen anywhere in the company. The value created can
be internal, as is the case with human resources, or directed out to the customer as
a product on the shelf. The point is that value is created and reaches the customer
in some way. ”
What is important to understand from the start is that there is a difference
between innovation and having a creative idea. Both processes can be
innovative in their own way but we shouldn’t confuse them. Kruse told me a little
story that helps to keep in mind the difference between the two processes.
10. 14 the basics
The first airplane was actually visualized by Leonardo da Vinci in the 1480s.
That was just a creative idea. The idea became an invention when the Wright
brothers made a plane out of it, which lifted from the ground in 1903. But
the airplane, at that point, was still not an innovation because it was not yet
marketed.
Twenty-one years later, Continental Dusters (which subsequently became part of
Delta Airlines) gave the airplane its first commercial use, dusting crops. This is the
point in history when the airplane became an innovation.
Similar points of view to Kruse’s are those of Richard Florida and Martin Kenney,
in their book from 1990, The Breakthrough Illusion: Corporate America’s failure to
move from innovation to mass production, consider invention as a breakthrough and
innovation as an actualization.
a innovation
ive ide
≠
creat
11. the basics
29
// THE DIFFUSION THEORY
Diffusion is very well linked with the tipping point theory. You’ll see why.
Academics call the process by which new ideas or products are accepted by
groups of people, The Diffusion of Innovation. The term is coined in 1962
by Everett Rogers, professor at University of Mexico. He set up five steps
of the diffusion process and he also tried to build some criteria by which
innovations spread out faster. He explores how the social environment
influences the way a new innovation spreads. This is what it looks like:
innovation
innovation
in n o va tio n
innovation
innovation
i n novators
early followers
early majority
late majority
laggards
diffus
ion th
eory
12. 36 scanning
WEAK SIGNALS
HOW TO BOIL A FROG
If you drop a frog into a kettle of boiling water it will definitely try to escape.
The reason being the temperature difference is too extreme (20°-100°). However,
if you put a frog in a kettle of water at room temperature and then start to
slowly warm the water, the frog will hardly even notice when the water starts
to boil.
The moral of this story: we easily adapt to changes; we may not even
notice them if they happen gradually. With this funny and insightful tale
I began my morning discussion with Elina Hiltunen in Helsinki.
Elina Hiltunen, founder of What’s Next Consulting, carried out her doctoral
Elina Hiltunen
thesis about using weak signals in organisational environment and has been
interested in this subject since 1998. She is now Finland’s leading expert on
weak signals and focuses on issues like anticipating and innovating future
changes by utilising them. Through weak signals (the first bubbles in the
water as it heats) one can foresee changes.
While talking to Hiltunen, I started to understand what this weak signal
Weak Signals thing is all about and how they are useful futures tools for companies. Elina
are signals offers companies methods, education and inspiring lectures about weak
of emerging signals, which she briefly defines as signals of emerging issues. In practice,
issues. she explains, “they can be news stories or observations about technological
and social innovations, posts in the social media, observations of novelty
products in exhibitions, or simply a modest wall-sticker of an alternative
movement” .
Igor Ansoff, a Russian American applied mathematician and business
manager who is known as the father of strategic management, coined the
term ‘weak signals’ in 1975 and, according to him, it is “the early detection
of those signals that could lead to strategic surprises and to an event that has
the potential to jeopardize an organization’s strategy”.
On a more proactive note, weak signals mean that today’s information
can foretell the changes in the future. Nik Baerten, future explorer at
Pantopicon, a studio of future explorers based in Belgium, expounds on the
subject on their blog: “Change often starts with a ripple before it turns into
13. compar
online
e or ma
tch
information
reality
onmental scann
envir ing
!
uch
oo m e!
i lt e r t ang
Don‘t f to c
h
R e m ain open
weak signal
most often used in
most often used in predicting
predicting new trends
new trends in technological
in technological and social
and social development
development
emerging issue
e v olvi n g
tren d interpreta
tion
deve lo p
needs time to
14. 248 the trend & future dictionary
THE TREND&FUTURE
DICTIONARY
A collection of definitions picked up from interviews, articles, books
and blogs discovered and used during the road trip.
WEAK SIGNALS
News stories or observations MACROTRENDS
about technological and social Pattern-based understanding
innovations, posts in the social of past and present, help to
media, observations of novelty determine the likelihood of
products, or simply a modest wall- future events. Their life span is
sticker of an alternative movement. five to ten years. macrotrend
Weak signals are current oddities, e.g. Fair Trade
strange issues that are thought to
be in key position in anticipating
future changes in organizational
environments. / E. Hiltunen
e.g. H&M starts selling vintage clothes.
MICROTRENDS
microtrend
Concrete examples of marketed
MEGATRENDS inovations: technologies, products,
Last decades, affect many different start-ups etc.
aspects of society, and involve Life span of 1-2 years until they
a complex process that often develop into a stronger trend or
includes politics, economy and disappear completely.
technology. A microtrend is something new,
e.g. Sustainability intelligent, mass-market ready and
structure changing.
dnertag e.g. Ben&Jerry‘s fair tweets: Ben & Jerry‘s
TREND
e m and Twitter use every unused character by
The general direction in which automatically adding a message linked to
something tends to move. the tweet. The aim is promoting fair trade.
15. the trend & future dictionary
249
CONSUMER INSIGHTS USER DRIVEN INNOVATION
A fresh and not-yet obvious Customers are observed to
understanding of customer beliefs, understand how they work
values, habits, desires, motives, with the product and what
emotions or needs that can unrecognized needs they have.
become the basis for a competitive / Design Thinking is a broader
advantage. / M. Sawhney. approach and describes a whole
Insight is about what’s happening process while User Driven
in the space between the consumer Innovation just indicates that the
and the product, his key motives, user is integrated in your project
drivers and barriers. development.
Spotted through close observation, User-initiated innovation: the
tion
empirical research and direct
innova
consumer creates or improves a
content with the consumer. product. Von Hippel called this
e.g. People startig to consume regional ‘user innovation’.
products being away from their hometwon.
Insight: people are feeling home-sick.
CREATIVE THINKING
The term innovation is often used
DESIGN THINKING to refer to the entire process by
A human-centered approach to which an organization generates
innovation that draws from the creative new ideas and converts
designer’s toolkit to integrate the them into novel, useful and viable
needs of people, the possibilities of commercial products, services,
technology, and the requirements and business practices, while the
for business success. / term creativity is reserved to apply
D. Brown. specifically to the generation
of novel ideas by individuals or
gnikniht groups, as a necessary step within
ngised the innovation process.
/ Wikipedia
16. If there is one single book I recommend to get a joyful taste of what the work in
the fields of innovation and trends is like, then it is this impressive work by Delia
Dumitrescu. She tells the story of her mental and physical learning trip and easily
manages to shed light on and give answers to most of the pivital questions an
outsider would ask.
Dr. Pero Mićić, CEO FutureManagementGroup
‘Road Trip to Innovation’ is a fun to read, non-pretentious exploration into
the world of innovation told through a refreshing and honest voice.
It’s not about making grandiose statements, it simply gathers and compiles
information from the movers and shakers of innovation into one comprehensive
look; and more often than not, that’s all you want and need – simple, honest, and
comprehensive.
Susan M. Choi, Director of Strategy + Innovation, CScout Inc.
As a ‘Trend Passionionate’ person I love to work with insights and trends as
inspiration for idea and concept development.
The term ‘trends’ covers a broad variety of definitions. This is both chance and
confusion simultaneously.
For my daily innovation work I aspired a kind of navigation tool. ‘Road Trip to
Innovation’ is the perfect synergy of this type of tool: educational and beneficial
concerning the various perspectives of future research and it is fun to read – be
inspired!
Jens Bode, International Foresight Manager at Henkel AG & Co. KGaA
ISBN 978-3-00-035736-7