The basic problem: it is necessary to redefine the foundations of Innovation
The current changes concern not only the product, but everything connected to it. Today it is necessary ● a rethinking of the why of a product ● of the ideation/design process ● of the production/distribution process.
Principles of real innovation
In this period of radical changes (disruption) the Principles of Innovation are:
1. INNOVATION IS FINDING A SOLUTION FOR A PROBLEM OF THE HUMAN BEING
2. THE HUMAN BEING IS THE CREATOR OF INNOVATION
3. INNOVATION IS A RADICAL CHANGE (a paradigm shift)
4. TO INNOVATE IT IS NECESSARY TO CHANGE THE MINDSET
5. TO INNOVATE IT IS NECESSARY TO HAVE A VISION6. INNOVATION IS A CHANGE OF CONSTANTLY CHANGE IN PROGRESS
Decalogue of Rules of Disruptive innovation
In this disruptive phase of the Market we need Disruptive Innovation.
1 – RADICAL INNOVATION AND NOT IMPROVEMENT PERFORMANCES OF EXISTING PRODUCTS
2 – UTILITY VALUE OF THE PRODUCT (THE PRODUCT IS A SERVICE)
3 – BOTTOM-UP VALUES – INTERCONNECTED (SOCIAL NETWORKED) PROACTIVE CONSUMERS
4 – FRIENDLY CONSUMER EXPERIENCE
5 – CONSUMER TECHNOLOGIES, NOT HI-TECHS
6 – PROXIMITY BUSINESS – from Global to Local (G-Local)
7 – SCALARITY OF THE SOLUTION (gradual upgradability)
8 – DURABILITY
9 – MANAGEMENT/MANTEINANCE COSTS
10 – COLLABORATIVE PRODUCTS (SYSTEM) / SHARING
11 – INTEGRATION IN AN ECO-SYSTEM
12 – CUSTOMIZABLE/EVOLVING PRODUCTS
13 – BUSINESS MODEL CHANGE: BUSINESS AS MISSION
Some of the main changes
We enter a post-industrial phase, in which “mass production” is overcome: production becomes Customer-driven. In the new context:
● the role of the individual as a regulator of supply is recovered.
● the value of use of the product is recovered.
We pass from an ephemeral, emotional value (typical of the end-of-1900 market) to a Utility-value.
In particular, the value is no longer provided by the technology itself (growth has always occurred when a value of use was superimposed on technologies).
In the next phase of the market there will be new qualities of production and distribution. Among which: ● local production (Zero KM distribution): ● niche products – tailor-made (services and material goods) ● self-construction ● self-production (the Prosumer market: the Users become “producers for themselves”) ● “infinite durability” ● self-maintenance ● upgradability.
The new production methods are based on: ● convergence of technologies and knowledge ● convergence of market sectors ● convergence of production and distribution phases.
New business models will emerge as Manufactory 4.0 and Franchising-Transplant Factories.
The current strategies of the big Players are based on serious misunderstandings about innovation (they define fake-trends that distort the meaning of real trends).
This is caused:
1) lack of understanding of the fact that Disruptive innovation is a “revolution” that means a “radical change” (from the roots) of culture, of the mindset (change of operating principles, of conception of values, of a design approach, of types of communication, etc.).
2) Dirsuptive innovation involves a fresh start, ie it involves starting something absolutely new (a real new thing).
3) for these reasons the Disruptive innovation that we are talking about today is mostly a bluff.
The wrong direction of current Innovation: fake-trends
The problem of the Market is mainly in the fact that the big Players, to protect their competitive advantage accumulated in the previous market phase, “tame” the Trends (in Italian politics they say “change something in order not to really change”).
A Fake-trend culture is born (by Incumbents and Government) that hinders the birth of a true innovation. And, in the end, it leads to the failure of the big Players themselves (because customers can buy products of the current generation).
Today the Market continues to apply a non-disruptive mindset even when the data indicate this modality inexorably fails. To innovate means to change. When there are major changes in the Society, it is necessary to adapt. There is no choice. Are we sure that we understand what radical (disruptive) innovation is?
The recession derives from the fact that today obsolete criteria are used – myopistically – to try to explain a totally new situation.
The Trends of Civilization cannot be manipulated top-down: but the big Players consider the trends like something that can be managed in their favor.
First we need to understand the meta-trends: the driving force of trends (they are the “why” of real innovation)
Crow-ization is the main Meta-trend: a strong drive of people to manage directly aspects of their life which today are managed by the “Institutions”.
Incumbents are the object of disruption,and therefore can not be the subject. The big players literally can’t develop disruptive innovation within them, due to:● lack of culture of (real) innovation ● lack of “intuition”. Disruptive innovation can only come with a fresh start (from new comers).
Towards a radically new model of Industry 4.0: Smart Fabrication
The Fab Labs are part of the Market that is now at sunset (a failed Model). But from some qualities of Fab Labs new Business Models can be born (and new ways of Production/Distribution).
Some misunderstanging about innovation
● The misunderstanding on ecology: electrification of devices that are not ecological in themselves ● Disruptive innovation is not based on technologies ● Towards a new (real) sustainability: the mistake of focusing on the low price ● Misunderstanding: the future is not futuristic as one imagines it today° ● “Futuristic vision” and insustainable products: cases of Flying cars, self-driving cars and electric city car° ● The misunderstanding on Innovation by Manager, Consultants and Pundits ● The misunderstanding on Industry 4.0: towards Manufacturing 4.0 ● Does it really exist to the possibility of having an Artificial Intelligence? (the unsustainability of the AI)