Posts Tagged ‘products’

“Copycats” – a fresh look at how imitation contributes to innovation

Wednesday, June 16th, 2010

copycats“We are like dwarves standing on the shoulders of giants,” Bernard of Chartres.

“Good artists borrow, great artists steal,” Picasso, or, more likely, TS Eliot.

You’re “stepping all over Apple’s IP,” Steve Jobs.

Let’s get one thing straight. There aren’t any truly original ideas out there. Even the most astonishing scientific breakthroughs are built on the foundations of others’ work. Innovation, even great innovation, is frequently recombination of existing piece parts along with a twist or two, perhaps a different business model, core market, geographic focus.

Most of the literature on the subject, though, treats innovation as a sacred search for the truly different and unique, and diminishes the role of imitation. As such, it does a disservice to business – an audience that fails to appreciate the critical importance of not reinventing the wheel. [You could argue that reviewers and bloggers have enabled this innovation-worship, including this one.]

Oded Shenkar’s new book, “Copycats: How Smart Companies Use Imitation to Gain a Strategic Edge,” goes in the other direction. Shenkar celebrates corporate imitation. At the outset, he describes the biological conditions that favor imitation as a survival mechanism in all species. Then he points out that most innovative products spawn several followers who become long-term successes (often at the expense of the first mover). Southwest has been spectacularly successful, but so have EasyJet and Ryanair. Wal-Mart borrowed many concepts from Sol Price’s long-gone FedMart (Price, an amazing retail innovator, went on to found another innovative concept, the Price Club shopping warehouse, only to be swallowed up by imitator Costco in 1993).

Through his case studies and skewering of the innovation-worshiping business culture, Shenkar seems to be advocating against doing anything new. But as the book goes on, his overarching theme becomes clearer. Sheer imitation can only get you so far. Imitation combined with tightly-focused innovation (a combination Shenkar calls “imovation”) is the best strategy possible. In other words, take the best of what others have done–don’t be the first into a new market, or be the first widget out there–but nonetheless add some distinctive capability.

What Shenkar advocates is more nuanced than the summary just presented. But as I read “Copycats,” and got more convinced of his point, I was unconvinced that this approach needs a new name. To my eyes, innovation (at least successful innovation) does involve this intense borrowing of existing concepts and adding something unique and valuable, whether it be integration, business model, user experience, or (as Roberto Verganti would assert) the meaning users attribute to the product.

But this is quibbling. “Copycats” goes against the grain of the current innovation literature, much to its credit. It deserves to be read by anyone trying to innovate or imitate – and perhaps those should be the same people.

Related posts:
Roberto Verganti – innovation via changing the meaning of a product
Various innovation-worshipping posts

Thinking about… Verganti’s “Design-Driven Innovation”

Wednesday, July 29th, 2009

Mentioned in this post:

The invaluable stories inside customer-service calls

Tuesday, July 14th, 2009

Much of the story work I’m familiar with involves asking people to tell stories about their experiences on a particular topic. I do some of this myself. But I’ve also done work with a completely different class of story. This story is created out of the spontaneous meeting of two people – a customer and a customer-service rep – over the telephone.

A customer-service call is less an anecdote than it is like a play unfurling in real time. There’s nothing but dialogue, yet there’s conflict, emotion, suspense (will she get the credit she’s demanding for the series of dropped calls? Or will she have to escalate to the supervisor?). Listening to these recordings gives you an intimate view into the relationship customers have with their products and with their service providers.

And within these calls there are almost always sub-stories–the sequence of events that led to the person calling in the first place. There are also moments of human connection… and of estrangement.

Compared to elicited stories, contact-center calls have advantages and disadvantages:

Advantages:

  • Spontaneity
  • Authenticity
  • Freely given
  • Lack of self-consciousness or self-censoring
  • Highly inclusive (everyone has a telephone and most people call customer service eventually)
  • Easy to access


Disadvantages:

  • Noisy–lots of pro forma dialogue which is not story-related
  • Undirected–if you’re interested in one scenario, you’ll have to spend time narrowing down the calls
  • Voluminous and redundant (which is not always a problem)

Listening to series of customer-service calls reminded me of reading the work of William Gaddis. His books (especially “JR” and “A Frolic of His Own“), continuous dialogues with few bits of exposition, are not easy to read. But they are full of meaning and insight. This insight isn’t presented in headlines, but accrues, organically, as you’re immersed in the conversations. Similarly, searching through call recordings and finding patterns reveals true customer insight that’s hard to gather any other way.

If you think you lack customer intelligence, and you have a call center, you couldn’t be more wrong. You have terabytes of it sitting in your call-recording databases. Start using it.

Related post:
Turning points in telephone sales calls

(Photo by benthecube via Flickr Creative Commons)

Customers are talking: you can’t listen to customers if you hate them

Tuesday, January 6th, 2009

Every Tuesday, this space will cover “Customers Are Talking… Are You Listening?”

“Customers Are Talking” builds on the work I’ve been doing for the last fifteen years in product management, sales & account management, & specifically on the story-listening work I’ve embarked upon in the past year. (I cheated a little by sneaking in two posts on this subject yesterday.)

It was great to read a recent interview with one of the quietest great thinkers I know, Cynthia Kurtz.

While discussing some things she had learned in her work helping companies and governments gather and work with stories from customers and employees, she said this:

Several times now [in these projects] I have seen people viewing their clients or customer or employees or constituents with contempt, for example equating weakness, confusion or ignorance with insignificance, low status/value/worth or even wrongdoing.


As I read this I was surprised and shocked, yet at the same time I nodded my head and said to myself, “Oh, yeah, I’ve seen this lots of times.” No company would admit that it hates its customers, but if the leadership looks deep into their hearts they may recognize the behavior that Cynthia mentions.

And for marketers this is a big concern. Because marketers, more and more these days, need to listen to and act on customer feedback. People don’t listen to those they hate. They disregard, dismiss or rationalize their statements. Even when marketing believes in its customers, if the organization’s culture is a customer-hating one, the messages won’t get acted on. [It may go without saying that customer-hating companies will be punished first in a difficult economic environment.]

So, if you’re instituting a voice of the customer program, or if you’ve already got one, answer these questions first: do I think my customers have something valuable to say? Will I listen to it and try to act on it?

Because if you’re one of those companies that holds their customers in contempt, asking them what they think won’t do you any good.

[By way of equal time, I should probably refer to this earlier post where I talked about companies who are hated by their customers.]