McKinsey’s Business Trends to Watch

1 12 2008

McKinsey Quarterly offers some interesting observations on a host of key business trends that are being driven by the influence of technology like Web 2.0. Given the recent discussions, more food for thought.

These trends fall within three broad areas of business activity: managing relationships, managing capital and assets, and leveraging information in new ways.

I want to highlight the first and third in this post. Much of what os.a is all about relates to these MQ Trends.

You can find McKinsey entire article here.

Managing Relationships

Distributing co-creation

Technology now allows companies to delegate substantial control to outsiders–co-creation–in essence by outsourcing innovation to business partners that work together in networks. By distributing innovation through the value chain, companies may reduce their costs and usher new products to market faster by eliminating the bottlenecks that come with total control.

os.a Examples: New businesses created around networks versus traditional management hierachy

Using consumers as innovators

Consumers also co-create with companies… But the differences between the way companies co-create with partners, on the one hand, and with customers, on the other, are so marked that the consumer side is really a separate trend. These differences include the nature and range of the interactions, the economics of making them work, and the management challenges associated with them.

os.a Examples: Tapping end users to “co-create” content, product or services

Tapping into a world of talent

As more and more sophisticated work takes place interactively online and new collaboration and communications tools emerge, companies can outsource increasingly specialized aspects of their work and still maintain organizational coherence. Much as technology permits them to decentralize innovation through networks or customers, it also allows them to parcel out more work to specialists, free agents, and talent networks.

os.a Examples: Extracting more value from interactions

Technology tools that promote tacit interactions, such as wikis, virtual team environments, and videoconferencing, may become no less ubiquitous than computers are now. As companies learn to use these tools, they will develop managerial innovations–smarter and faster ways for individuals and teams to create value through interactions–that will be difficult for their rivals to replicate.

os.a Examples: Ride the LongTail , Web 2.0 Adoption by Companies by Global Region

Leveraging information in new ways

Putting more science into management

Leading players are exploiting this information explosion with a diverse set of management techniques. Google fosters innovation through an internal market: employees submit ideas, and other employees decide if an idea is worth pursuing or if they would be willing to work on it full-time. Intel integrates a “prediction market” with regular short-term forecasting processes to build more accurate and less volatile estimates of demand.

os.a Examples: Prediction markets for associations

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Lesson of November 4th – Power of Community

7 11 2008

lafpark5

Revelers in Lafayette Park across from the White House on election night.

Lost in the euphoria and the recent news headlines of the election of our first African American to the Office of the US Presidency is the recognition of a major strategy that guided the Obama Campaign through the primaries and now the Presidential Election.

It was joked and ridiculed at the Republican Convention.  But no one is laughing now.

Community organization won this election.   In fact, it transformed politics in this country forever.

A bottom up strategy giving average Americans a “direct” opportunity to “contribute” their energy, passion, talent and yes MONEY.

Obama won by giving the keys to the inmates in the asylum.

Thousands of unpaid volunteers who never participated in politics previously destroyed two well-heeled political brands (Clinton and McCain) on their way to the White House.

Only in America.  And here is the lesson for associations.

While much of this vaunted Obama machine was web-based featuring tools for e-commerce, social networking, and community organizing,  the lesser known neighborhood volunteer efforts run precinct by precinct made this campaign personal to millions.

Obama used community-centered politics to drive his campaign.

Just like InnoCentive, Ninesigma, ArtistShare, Open Architecture Network, and many others featured on these pages.

The research evidence proves that community-centered strategies that give end users freedom to create and drive innovation boost product and service growth.

Here’s a salute to our new President.  And one more for those brave enough to let the inmates co-create the future in your own associations.





Tuesday’s ASAE Session on Crowdsourcing

22 08 2008

Thanks to all for attending our session and for Moshe Pritsker, PhD from JoVE and Chuck Davis from InnoCentive for coming to the ASAE and Center AGM in San Diego this year.

Here are our slides from the session titled, “Associations Next Crowdsourcing the Creation of Value.”

Note: Session was recorded by ASAE & Center so you can play them together from here.

Session Introduction provided by Jeff De Cagna of Principled Innovation.

Peter & Chuck’s presentation (download and view in slide mode)

Moshe’s presentation (download and view in slide mode)

Samples of previous posts

What is crowdfunding?

Crowdsourcing news

Crowdsourcing publishing

McKinsey study suports co-creation (e.g. crowdsourcing) practices

Having the courage to adapt your models of engagement

“Father of co-creation” speaks out

Tiny company with 12,000 customer product development community

Lots more by going to the right hand margin under “product co-creation.”





Monday’s ASAE Session on Open Innovation

21 08 2008

Thanks to all for attending our session and for Chuck Davis from InnoCentive for coming to the ASAE and Center AGM in San Diego this year.

Here are our slides from the session titled, “Associations Next: Using Open Business Models to Create New Value.”

Note: Session was recorded by ASAE & Center so you can play them together from here.

Session Introduction provided by Jeff De Cagna of Principled Innovation.

Peter’s presentation (downloads should be played in slide mode)

Chuck’s presentation (no downloads permitted)

Previous Related Posts

HBR’s take on the importance of openness in innovation

More background on open business models applied to associations

InnoCentive’s business model explored – TV interview

Make sure to review the posts and links of open innovation research from McKinsey, Forrester,etc as well as more examples of open business models from the column on the main page of os.a.





TED Conference Injects Crowdsourcing

27 02 2008

If you are a devotee of TED’s videos you know that this event has has some amazing presentations. I have been jealously watching them for years since the event was started by Richard Saul Wurman. But I always wondered whether people walk away from such an inspiring event and feel a little frustrated as the enthusiasm runs through their fingers like so much sand without marshaling that emotion into real projects.

This year TED looks like they are fixing that problem by bolting on a crowdsourcing attendee experience using a new software product called Kluster.

Watch this video to see how they plan to do it. (Click on image)

Over the 72 hours of TED, they plan to use the power of the audience and the rapid-prototyping system and software to develop a tangible product. And we can all join the party. You can sign up here.

Good luck guys.





Control? Due Diligence? Distrust? Lack of Imagination?

9 02 2008

For decades we operated closed systems controlling who designed, delivered and received the credit from standards to best practices to industry guidelines. To some members and observers it was seen as a kind of feudal system.You can almost envision a castle surrounded by a moat with kings and queens, dukes and duchess, knights and serfs. A cultural of entitlement reigned as IP protection systems safeguarded all who served the system inside the walls.

Kind of like this…

Today many IMO’s are tracking the slow trend of negative growth in membership as older players retire or change careers while student members “vote” with their feet as upon graduation they never take their expected place as young professional members around the roundtable.

Why?

Could it be they see a closed system that does not relate to their own views about career, profession and group interaction? Do they perceive a sense of distrust among the “chosen” or “entitled” class? Is the system stacked against those who prefer to pursue ideas and outcomes rather than to follow older “pay your dues” methods that keep power with those with tenure? Or is it a lack of imagination? A lack of recognition in how new generations want to interact, collaborate, and achieve?

Forrester Research conducted a fascinating study on how different generations use the Internet. It may hold part of the answer to these questions. And whoever is in charge of “due diligence” better study up.

Running from left to right in columns are the generations from the NetGeneration/Millenials (the largest – those under 22 years), Gen Y, Gen X, two groups of Boomers, and Seniors. The rows represent different types of ways people prefer to use the Internet. From top to bottom they represent preferences of engagement from the most (the lean forwards) to the least (the lean backs). Turns out just like different styles of learning, people have different preferences for online activity.

What is critical to appreciate is how from old to new you can see the tremendous change in how people prefer to create, consume and collaborate. As you might expect, the older you are the least likely you are to be active online. I saw this first hand in many board rooms and among established experts in the ICT industry who amazingly were totally ignorant of how the world is changing despite their expertise and credentials.

This slide is super critical to appreciate. If you are segmenting your customers be sure to include generational segmentation as you examine product design and delivery or governance models. You ignore the coming shift at your own peril.

Here is an interesting example of what I mean.This Millenial plays video games. He hates Sony’s new product so much that he created his own “video of complaint” and posted to YouTube…1.8 million views later I found it last summer. Today that number is over 3 million.

This couldn’t have been done ten years ago by one person with an idea and a PC. And would have cost $100,000.This video is an illustration of the expertise, passion, knowledge and creativity that “lives beyond the walls” of your closed system.

Do your due diligence…. Examine new models…. Embrace more open systems …. Or become marginalized slowly like the air running out of a balloon.





From Mega Trends to Association Trends to Meeting Trends

3 02 2008

MPI PEC North America in Houston is a good place for me to return to the blog with a presentation on how key MegaTrends affect associations and their events. I presented along with my UK colleague Vanessa Cotton of ExCel in London.

Here is the session overview:

MegaTrends

  • Global Economy
  • Demographic Shifts
  • Science and Technology Advancements
  • Sustainability
  • Open vs Closed System

Association Trends

  • Global Strategy
  • Standard Product Development
  • Business Metrics & Measures
  • Customer Attention Deficit
  • ISO Credible Sources
  • Customer Experience Management
  • Regionalization (Planning/Infrastructure)
  • Hot Regions

Association Meeting Trends

  • Alliance and partnership development – ongoing conf business (co-branding, outreach, BD, sponsor channels)
  • Product development process – event business strategy, end user integration
  • Customer “value add” experience design – mapping before, during and after experiences
  • Digitizing and monetizing conference content – taking face 2 face content and distributing it more widely

This version does not contain builds and embedded video.